Yields surprised on the downside over the last quarter, prompting us to ask: how low can they go? In the presence of cash as it currently exists, and with total debt ratios where they currently are, deposit rates could in principle fall as far as -250 basis points, while long government bond yields could fall as far as -500 basis points. If physical cash were rendered obsolete or abolished, then those lower bounds could shift down to the point where…
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