Negative yields on long-dated government securities are more reflective of distorted market conditions than of stronger sovereign credit profiles, Fitch Ratings says. Lower interest service costs support sovereign creditworthiness, but this must be weighed against the impact of the economic conditions leading to lower yields and historically high government debt levels in a number of countries. There are nine sovereigns with 10-year bonds that trade at market prices implying a negative yield to maturity. The nominal stock of government debt with negative yields is about USD15 trillion. Last week the yield on ... (full story)