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Global negative yield debt hits record $18 trillion

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Bloomberg/Cormac Mullen and John Ainger/12-10-2020

“Despite optimism about a global economic recovery next year sparking a rush to riskier assets like stocks and corporate debt, continued monetary support from central banks and concern about the relentless spread of the coronavirus has maintained investor interest in sovereign bonds. The rise in negative-yielding debt since March has coincided with a broadly weaker dollar.”

USAGOLD note: As this World Gold Council chart shows, there is a direct correlation between rising global negative-yielding debt and the gold price.

overlay line chart showing the correlation between negative yielding debt and the price of goldChart courtesy of the World Gold Council

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