Switzerland for the first time to issue bonds with a fixed rate to 0%, the Financial Times reports, citing data from the National Bank of Switzerland. His last bonds with similar maturity in 2030 were released in March. They rate was 0.5%.
On Wednesday held an auction to sell bonds with zero yield, which will repay in June 2029. FT believes that investors will be willing to purchase securities with a guaranteed loss.
The yield on Swiss government bonds traded in the secondary market, is negative for almost 20 years, reminds FT. The publication notes that the yield on 25-year bonds is 0.06%, which is two times less than that of securities with 30 years maturity.
Ultra low and negative bond yields became a standard in European markets, writes the FT. The newspaper reported that on Monday, the first was negative, the average yield on German government bonds. According to the German Federal Bank, it was minus 0.02 percent, and the zero level was reached in April.
According to the economist, the financial company Standard Life of James McCann, the number of bonds with negative yields would multiply, until the economy enters the recovery stage.
Last week, according to Fitch Ratings, the total volume of government bonds traded with negative yields, exceeded $10 trillion, despite the fact that their cost in the Euro zone and Japan increased. The ECB since March of last year bought sovereign bonds worth €817 billion, the FT notes that the volume of corporate bonds with short maturities and negative returns exceeded $36 billion.
In March, for the first time sold bonds at a negative yield of Japan. Their value amounted to ¥101,25 per share at a rate of minus 0,024%.