Major advanced economy sovereign bond yields, on the other hand, have remained very low or even fallen. The Bank for International Settlements has calculated that about $ trillion in sovereign bonds, or about one-quarter of the JPMorgan government bond index according to one report, are now trading at negative yields in global capital markets.
The Japanese government – by far the most indebted government in the developed world – can borrow for 10 years at a negative interest rate. But spreads for lesser rated sovereign and private debt have widened, in some cases quite significantly. Equity prices have been choppy and generally weaker.