Negative rates loom for UK but market participants unconcerned

By Frank Jackman, Lewis McLellan
21 May 2020

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 ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.