LONDON, May 4 (Reuters) – The market value of negative-yielding euro zone government bonds on the Tradeweb platform rose in April to around 4.5 trillion euros ($4.9 trillion), or roughly 55% of a total market worth slightly more than 8 trillion euros, Tradeweb data published on Monday showed.
That rose from around 50% at the end of March and reflects renewed demand for fixed income assets as the coronavirus pandemic battered the world economy and boosted expectations for further monetary stimulus in the months ahead. The share of negative-yielding government debt was at its highest level since February.
The pool of negative-yielding investment grade corporate bonds, which had virtually disappeared at the end of March, also grew again, according to the Tradeweb data.
The market value of investment grade corporate bonds with a negative yield at the end of April stood at around 71 billion euros, or 2.2% of a total market worth around three trillion euros, Tradeweb said. This was up from around 40 billion at the end of March. ($1 = 0.9139 euros) (Reporting by Dhara Ranasinghe Editing by Tommy Reggiori Wilkes)
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