U.K. Bond Rates Lower Than Japan’s Warn Economic Pain to Drag On
- Spread between U.K. and Japan’s bond rates falls below zero
- Concern over U.K.’s future driving demand for safety of bonds
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The U.K. now pays less on its debt than its Japanese peers, the latest sign investors are betting on further interest-rate cuts to stave off a deep recession.
The yield on the U.K.’s two-year bonds declined to an all-time low of minus 0.129%, inverting the spread between the nations’ securities for the first time on record, based on generic benchmark rates. The gaps on five- and 30-year bonds aren’t far off zero.