The yield curve of the Japanese bond market is getting buried in negative territory as are yields in Germany and Switzerland. The only way investors will make a profit is when negative yields fall further. Once negative yields start moving up towards zero and then positive territory, the bond market will stare at huge losses. A Bloomberg report notes that the 10-year US government bond yield is lower than the stock market dividend yield. This would cause an aggregate loss of $3.8 trillion to bond markets, the rating agency believes.

Source: Mint September 25, 2016 17:15 UTC