The European Central Bank has pushed yields on the corporate-bond market so low that they no longer meet the criteria of its own bond-buying program, Bloomberg reports.
According to the media’s data, yields on bonds from Paris’s public transport network have already dipped to -0.4 percent. Bonds from Europe’s largest engineering company Siemens, as well as French train operator SNCF and oil company Sagess are approaching this threshold.
As more and more corporate bonds in Europe are turning negative, economists are raising questions how long the ECB can stimulate growth through buying bonds.
Yields on €2.6 trillion worth European government bonds have turned negative after the central bank bought €1.3 trillion in fixed-income assets, including €32 billion in corporate bonds, Bloomberg reports.