What A ZIRP World Looks Like

Out of the United States, China, Australia, Germany, Canada, EMU, and Japan, only China has seen their bond yields, both government and corporate, move higher over the past five years. Outside of China , government bond yields have been moving in tandem recently. Canada, Australia, and the US 10-year yield have moved in lockstep, as have Japan, Germany and the EU, and the two groups have diverged since the middle of 2013. The latter group has fallen quite a bit and the former has risen slightly. In the countries where corporate yields are lower, corporate bond yields are all at least 25% lower and in the case of Canada, Germany, EMU and Japan yields are at least 50% lower.