The government's debt management office last week sold £1.25Bn of 10 year index linked gilts at a record low interest rate of -1.578% (HERE). People are actually paying money for the privilege of lending the UK government money. This is not unique to us, German bond are also being sold at negative rates of interest. What does this mean? I'm not sure, but commentators suggest it is a flight to safe havens in preparation for hard time ahead.
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