It was almost exactly a year ago that various bond yields in Europe turned negative, unleashing a wave of questions from our readers. Clients wanted to know what this strange phenomenon meant and how long it would last. Twelve months on, far from proving to be a temporary aberration, central banks in Europe have taken their policy rates deeper into negative territory. Now the Bank of Japan has joined in and helped push the 10-year government bond yield to almost zero today.
With risks to the global economy intensifying, there is even speculation that US and UK rates could also turn negative before long. So have policymakers discovered new ammunition in their fight against deflation? And how much further scope do they have to cut rates?
Click below to find out.