People wearing masks walk past the Bank of England, as the spread of the coronavirus disease continues, in London, Britain, March 23, 2020.The UK offered negative-yield bonds for the first time ever on Wednesday, ushering in a new market precedent as the debate around below-zero UK interest rates intensifies.Bank of England Governor Andrew Bailey has ruled out negative rates, but other policymakers have suggested an openness to the policy.
When interest rates fall, bond prices rise and their yields tumble. Those holding negative-yield bonds stand to win big if the central bank suggests an openness to below-zero rates.John Fedro quit his job and got involved in real estate with barely any money. He breaks down his low-cost approach to mobile-home investing, which allows him to live comfortably on passive income.
Investors are also pricing in a move to negative rates. Interest-rate swaps currently imply below-zero interest rates before the end of the year, according toWednesday's sale follows new data revealing the coronavirus' economic toll. UK consumer price inflation plunged to 0.8% in April, according to data released Wednesday, well below the central bank's 2% target. The gloomy data release could fuel new calls for additional policy to pad against a recession.
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Источник: BusinessInsider - 🏆 729. / 51 Прочитайте больше »
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