The UK broke new ground for a bond sale on Wednesday, borrowing at negative rates for the first time in a sign that investors expect more economic stimulus from the Bank of England. The UK sold £3.8bn of three-year gilts at a yield of minus 0.003 per cent, the Debt Management Office said. The slightly negative yield means investors who hold the debt to maturity will get back less than they paid, when accounting for regular interest payments and the return of principal.  Asked about negative rates at a parliamentary committee on Wednesday, Andrew Bailey, BoE governor, said the central bank did “not rule things out as a matter of principle” but he did not “rule things in either”. Andrew Wilson, chairman of global fixed income at Goldman Sachs Asset Management, said: “Negative interest rates are a tool that has limited value and the escape from negative rates is extremely challenging, as the ECB is discovering.” He added: “Our view is that negative rates are not the way out of this.”

https://www.ft.com/content/3d576f71-6833-4a55-8b8c-f4abfb0ca172