Capital Markets: Observations & Insights

Bond Yields Are Extremely Low ​ Searching For Yield

• U.S. bond yields recently hit their lowest level on record and, generally, global interest rates are at their lowest level in 5,000 years!* ‒ $11 trillion of global government debt currently yields less than 0%. Investors are paying to lend their money!

16

10-Year Government Bond Yields

14

U.S.

China

Japan

Germany

12

U.K.

Canada

Australia

S. Korea

10

8

6

4

2

0

-2

Jul-88

Jul-99

Jul-10

Oct-85

Apr-91

Oct-96

Apr-02

Oct-07

Apr-13

Jan-83

Jun-89

Jan-94

Jun-00

Jan-05

Jun-11

Jan-16

Mar-92

Mar-03

Mar-14

Feb-93

Feb-04

Feb-15

Dec-83

Nov-84

Dec-94

Nov-95

Dec-05

Nov-06

Sep-86

Aug-87

Sep-97

Aug-98

Sep-08

Aug-09

May-90

May-01

May-12

Source: FactSet. *Bank of England, Global Financial Data, Homer and Sylla “A History of Interest Rates,” and BofA Merrill Lynch.

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