Negative rates loom for UK but market participants unconcerned
The Bank of England this week signaled that it is changing its stance and considering bringing its base rate into negative territory. But with the UK Debt Management Office (DMO) issuing three year paper with a negative yield for the first time, as well as printing £7bn ($8.56bn) of 41 year bonds, there are few worries for the SSA market.
BoE governor Andrew Bailey told the Treasury Select Committee earlier this week that it would be “foolish” to discount taking the base rate below zero, despite previously saying the Bank was not contemplating the move.“There’s been a shift in the language from rejecting negative rates to considering them ...
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