UK sells 3-year bond at record negative yield

Credit: REUTERS/PHIL NOBLE

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.

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.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More