The U.K. borrowed at a negative interest rate for the first time on Wednesday, amid growing fears of a deep global recession and expectations of further bond buying action from central banks.
In an auction Wednesday, the country’s Debt Management Office said it sold £3.8 billion ($4.66 billion) worth of three-year gilts at a yield of negative 0.003%.
This negative-yielding bond means the British government is effectively being paid to borrow. Investors will get back slightly less than they initially paid if they hold the bond to maturity, such is the demand for shoring up money in bonds.
The auction means Britain joined Germany, Japan and several other European nations in selling…