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UK government sells negative-yield bonds for the first time

The UK Treasury has on several occasions since 2016 sold short-term, one or three-month bills at a negative yield, but this is the first time a longer maturity bond has gone negative

The UK issued its first bond with a negative yield as investors prepared for the possibility that Britain joins other European countries in having negative interest rates.

Comments from UK central bank officials in recent days fueled speculation among investors that the country may set benchmark interest rates below zero, as part of efforts to support the economy during the coronavirus pandemic. The policy rate is currently 0.1%.

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