We know about stock market bubbles, housing bubbles and commodity bubbles. But what is now developing is something less familiar but just as scary: a bubble in the world's bond markets.
Last week, the total amount of bonds that pay negative yields crossed a record US$14.5 trillion (S$20 trillion), according to the Bloomberg Barclays Global Negative Yielding Debt Index, which tracks sub-zero yielding debt. More than 25 per cent of all investment-grade bonds fall into this category, compared with 16 per cent at the start of the year.
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