UK Sells Negative-Yielding Debt For The First Time

UK Sells Negative-Yielding Debt For The First Time

Tyler Durden

Wed, 05/20/2020 – 08:30

Who would have thought that Brexit would result in a convergence of the European and UK bond markets.

With the UK swept by a debate whether it should follow Europe into negative interest rates, the bond market appears to have made the decision for it, when this morning the UK sold £3.75 billion in 2023 gilts at a negative yield of -0.003% for the first time, with a fall in inflation piling even more pressure on the fiscal and monetary policymakers to take new action to prop up the economy.