KONTAN.CO.ID - LONDON. Britain sold a government bond that pays a negative yield for the first time on Wednesday - meaning that Britain's government is effectively being paid to borrow as investors agreed to be paid back slightly less than they lent. The bond, which matures in July 2023, sold at an average yield of -0.003%. While investors will receive an annual interest payment of 0.75%, they paid above face value for the bond so the actual return in cash terms is less than they have lent.
UK sells first government bond with a negative yield
KONTAN.CO.ID - LONDON. Britain sold a government bond that pays a negative yield for the first time on Wednesday - meaning that Britain's government is effectively being paid to borrow as investors agreed to be paid back slightly less than they lent. The bond, which matures in July 2023, sold at an average yield of -0.003%. While investors will receive an annual interest payment of 0.75%, they paid above face value for the bond so the actual return in cash terms is less than they have lent.
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