The world-wide race to zero interest rates has passed a new milestone. Will Denmark’s negative interest rates influence lenders in other countries? Oliver Telling covers the story for Bloomberg. Investors are concerned that falling bond yields in the global market may affect bonds here in the U.S. According to Kathy Jones of Schwab, there are two factors that may limit the drop. The latest round of tariffs is likely to cost U.S. households about $1,000.00. Maggie Fitzgerald looks into whether the Trump administration will roll back on tariffs or compromise on trade agreements.
Negative Mortgages Set Another Milestone In No-Rate World — The world’s headlong dash to zero or negative interest rates just passed another milestone: Home buyers in Denmark effectively are being paid to take out 10-year mortgages. Jyske Bank A/S, Denmark’s third-largest lender, announced in early August a mortgage rate of -0.5%, before fees. Nordea Bank Abp, meanwhile, is offering 30-year mortgages at annual interest of 0.5%, and 20-year loans at zero. Read more…
How Do Negative Yields In The Global Market Affect The U.S.? — There are now more than $13 trillion worth of negative-yielding bonds in the global market. Just the idea of it runs counter to logic, and yet the amount continues to grow. Two questions that we get often from investors are “How did we get here?” and “Could it happen in the United States?” Read more…
Here’s What New Tariffs Will Cost The Average American Household — J.P. Morgan estimates the average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods. The firm’s chief U.S. equity strategist Dubravko Lakos-Bujas says unlike the agriculture sector, which is receiving subsidies from the government to offset some of the tariffs, “There is no simple way to compensate consumers.” Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller
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