UK sells negative-yielding government bonds for first time ever

  1. home
  2. > markets
  3. > UK sells negative-yielding government bonds for first time ever
replay trump newslist
up NEXT IN 5 SECONDS sports newslist
tap to unmute
00:00/00:00
NaN/0

UK sells negative-yielding government bonds for first time ever

May 21, 2020 16:04 IST

The UK borrowed at a negative interest rate for the first time on Wednesday, amid growing fears of a deep global recession and expectations of further bond-buying action from central banks. In an auction, the country’s Debt Management Office said it sold £3.8 billion ($4.66 billion) worth of three-year gilts at a yield of negative 0.003%. This negative-yielding bond means the British government is effectively being paid to borrow. Investors will get back slightly less than they initially paid if they hold the bond to maturity, such is the demand for shoring up money in bonds.

Markets