The UK sells negative-yield bonds for the first time — days after the Bank of England dismisses below-zero rates

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The UK offered negative-yield bonds for the first time ever on Wednesday, ushering in a new market precedent as the debate around below-zero UK interest rates intensifies. Negatively yielding bonds essentially leave investors paying to lend to the government. Bank of England Governor Andrew Bailey has ruled out negative rates, but other policymakers have suggested an openness to the policy. The dueling remarks create tension around a key bond-market driver. Any change in Bailey’s stance could boost the bonds’ value. When interest rates fall, prices rise and market yields tumble. Visit the Business Insider homepage for more

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