Mubasher: Dovish signals from central banks in Europe and the US boosted the total value of negative-yielding bonds by around $1.2 trillion this week, totalling $13 trillion for the first time, according to Bloomberg.

Government bonds in Austria, Sweden and France joined the club of debt 10-year yields this week, whereas Japanese and German rates hit fresh unprecedented lows, against the backdrop of a bond rally.

In Europe, yields on Danish bonds due to mature 20 years later hit a record low, sending the entire curve close to turn negative.

Almost 40% of global bonds are now yielding less than 1%, according to data compiled by Bloomberg.

In the investment-grade market, negative-yielding bonds account for nearly a quarter of the total.

As companies are benefiting from low interest rates to borrow more, issuance helped boost junk bonds of outstanding to over $1.23 trillion, doubling from the level seen a decade ago.

“As companies take advantage of low interest rates to borrow more, issuance has helped drive junk bonds outstanding to more than $1.23 trillion, more than double the level a decade ago,”

“Whether the universe of negative-yielding debt continues to expand depends in part on the policy of the European Central Bank under Mario Draghi’s successor and upcoming moves from the Bank of Japan, the two regions making up the overwhelming bulk of sub-zero yields,” the news outlet said.