LONDON, July 15 (Reuters) - Britain sold a three-year government bond with a record-low negative yield on Wednesday, highlighting investors' ongoing concern about the long-run impact of COVID-19 on the economy.

The United Kingdom Debt Management Office said investors bid to receive an average yield of -0.069% for the 3.25 billion pounds ($4.10 billion) of the 2.25% gilt that matures in September 2023 GBT0T23=, a record low auction yield for any conventional British government bond.

Two-year gilt yields GB2YT=RR touched an all-time low of -0.130% on Tuesday, despite government forecasters warning Britain's budget deficit could approach 400 billion pounds this financial year, after official data showed the economy made a weaker-than-expected recovery in May.

Demand for the September 2023 gilt was solid, at just over twice the amount on offer. This gilt was the first conventional gilt to sell with a negative yield at an auction on May 20.

($1 = 0.7936 pounds)

(Reporting by David Milliken, editing by Andy Bruce)

((david.milliken@reuters.com; +44 20 7542 5109; Reuters Messaging: david.milliken.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.