The Upside-Down World of Negative Bond Yields Is Getting Smaller May 25 2021, 12:47 PM May 25 2021, 9:31 AM May 25 2021, 12:47 PM (Bloomberg Businessweek) -- Fewer bond investors are having to pay for the privilege of lending out their money. (Bloomberg Businessweek) -- Fewer bond investors are having to pay for the privilege of lending out their money. For the first time in years, the global supply of debt with a negative yield is in meaningful decline. The trend is strongest in Europe, where subzero bonds have been an everyday reality for investors. Although the shift will be welcomed by those seeking safe income from new investments, it means current bondholders are losing money. (Bond prices fall when yields rise.) It also signals that higher borrowing costs are on the way for everyone from governments to corporations to homeowners. It could be an especially nasty jolt for junk-rated companies and emerging-market governments, which have been able to gorge themselves on debt at much lower rates than theyâre used to as investors took on more risk in search of better return.