UK issues negative-yielding bond as inflation wilts
Inflation dropped sharply in April amid coronavirus lockdown
The UK issued a bond with a negative yield for the first time today (May 20), as investors bet that low inflation could push the Bank of England to launch fresh easing measures.
The UK’s Debt Management Office reported the yield on the three-year bond was -0.003% at the average accepted price. The bond issue raised £3.9 billion ($4.8 billion).
The bond issue was oversubscribed by more than two times, despite the huge spending promises made in recent weeks by the UK government. The Institute
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