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53% Of All Global Government Bonds Are Yielding 1% Or Less

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http://www.zerohedge.com/news/2015-04-18/more-half-all-global-government-bonds-are-yielding-1-or-less

Earlier today, we were quite shocked when we heard two statements by central bankers uttered during a press briefing in Washington. The first comes from the ECB's Mario Draghi:

  • DRAGHI: LOW RATES FOR LONG PERIOD INCREASE FINANCIAL STABILITY RISKS

The second: from his supposed nemesis, if only for public consumption and not during the BIS' bimonthly meetings in Basel, Bundesbank head Jens Weidmann, who said a carbon copy replica of what Draghi had said minutes prior:

  • WEIDMANN SAYS LOW INTEREST RATES INCREASE FIN STABILITY RISKS

We were "shocked" because for once, we agree with central bankers. And to get a sense of just how right the two central bank heads are we go to Bank of America which overnight released a report in which it said that as of this moment, "53% of all global government bonds are yielding 1% or less (Chart 3)."

10%20Year_0.jpg

Let that sink in for a second.

And while you are contemplating that, here is another fact from Bank of America:

The global narrative remains maximum liquidity (Chart 2) & minimal interest rates. And it’s impossible to be max bearish with such an extravagant monetary backdrop.

maximum%20liquidity_0.jpg

Central bank assets now exceed $22 trillion, a figure equivalent to the combined GDP of US & Japan

I do wish they'd publish the report so these figures could be verified. However not great news for the pension ponzi. Are the worlds central banks cornering the market?

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released a report in which it said that as of this moment, "53% of all global government bonds are yielding 1% or less (Chart 3)."

10%20Year_0.jpg

I would have thought the interest rate rises after WW2 were because of productivity gains from all that new technology (transistor etc.) caused a lot of inflation.

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