In a frenzy fueled by Central Bank stimulus on worries about slowing economy, many of the benchmark treasury yield across the globe have went to record low while some have even delved into negative territory.
When an economy is slowing and faltering, it is common practice that the Central Bank exercises monetary policy to cut interest rates. The objective is to make saving less attractive and for people and companies to spend more, henceforth boosting the economy in process. The problem starts to surface when the economy isn't growing as fast as they would like but money is being forced to stuck in increasing asset bubbles territory.
The negative territory in Japan and Swiss in particular is particularly fascinating to me because it clearly indicates that demand and supply is not balanced. What the negative yield is telling us is to go out there and invest in riskier assets because ......