Negative bond yields would be sign of stagnation

Editor's note: Alan Greenspan, former chairman of the US Federal Reserve Board, said in a recent interview that international arbitrage in the bond market was helping push down long-term yields on US treasury bonds, asserting that nothing can prevent the United States from sliding into negative bond yields. 21st Century Business Herald comments:

The potential trend of negative US government bond yields mentioned by Greenspan was largely a response to the current downward trend of long-term US government bond yields. The increased risk of global economic uncertainty has prompted investors to flock to the US bond market, pushing down bond yields.

At present, developed countries have stubbornly low inflation and low interest rates; on the other hand, they have high debts and high deficits.