The universe of negative-yielding bonds grew about $1.2 trillionthis week after dovish messages from central banks in Europe andthe U.S., pushing the total past $13 trillion for the firsttime.

Joining the club of government debt with 10-year yields belowzero this week were Austria, Sweden, and France. Japanese andGerman rates plumbed fresh all-time lows amid a global bond rallythat even got Wall Street pondering life with Treasuries yieldsunder 1 percent.

“The message from the markets is that there are problems outthere that central banks, not just the Fed, are now responding to,”Ed Hyman, Evercore ISI chairman, told Bloomberg TV.

In Europe, another notable milestone was reached this week.Yields on Danish debt due to mature 20 years from nowdropped to a record low, leaving the entire curve within an inch ofturning negative. Some 40 percent of global bonds are now yieldingless than 1 percent, according to data compiled by Bloomberg.

It's not just sovereign debt. In the investment-grade market,negative-yielding debt now comprises almost a quarter of the total.And as companies take advantage of low interest rates to borrowmore, issuance has helped drive junk bonds outstanding to more thanUS$1.23 trillion, more than double the level a decade ago.

Whether the universe of negative-yielding debt continues toexpand depends in part on the policy of the European Central Bank(ECB) under Mario Draghi's successor andupcoming moves from the Bank of Japan, the two regions making upthe overwhelming bulk of sub-zero yields. Countries to watchinclude Belgium, teetering on the brink with a 10-year rate of 0.08percent, and Spain, at about 0.39 percent.

Bloomberg's calculations of total global negative-rate bondsdate to January 2017; monthly tallies prior to that indicate thatthe stockpile is now at a record.

— With assistance from Ruth Carson,Phil Kuntz, and Garfield Reynolds.

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