The first negative-yielding 10-year euro corporate bond is here
According to Bloomberg, Nestle's 10-year corporate bond (€750 million issue) saw its ask yield fall to around -0.01% this morning. That's the first in the European credit market as the negative yields "infection" continues to spread across the region.
With the ECB set to introduce additional stimulus next month and bond yields continuing to fall, I reckon this will be the start of many to follow in the corporate bond space.
With sovereigns already largely leaning towards negative and zero yields, investors sure look like they're running out of options if corporates also follow the same trend unless they're willing to take on more risk.
