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Markets Increasingly Expect Bank of England Rate Cut

  • Rate on six-month bills are sold at average yield of -0.0005%
  • Money markets bet BOE to lower rates almost 20bps by end 2021
The Bank of England reflected in a window in the City of London.

The Bank of England reflected in a window in the City of London.

Photographer: Simon Dawson/Bloomberg
Updated on

Investors agreed to pay the U.K. government for lending it cash for short periods, a sign they anticipate a Bank of England interest-rate cut and more economic pain.

The Debt Management Office sold six-month bills with an average yield of minus 0.0005% in an auction on Friday. It’s the first time investors bought the short-term debt at a negative rate.