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British 30-year government bond yields fell below the 1% mark for the first time on Thursday, as investors rushed to buy fixed-income shelter badets, while fears of a $ 30-year-old hedge fund rained in the United States. a global recession was intensifying.
The decline in bond yields reduces the cost of new government bonds, but is also seen to indicate that financial markets are expecting a slower growth and anticipated rate cuts from the Bank of England.
According to Reuters, 30-year government bond yields fell to 0.988%, down 8 basis points. Government bond yields at 10 and 20 also reached record lows of 0.414% and 0.85% respectively.
The trade dispute between the United States and China has raised fears of a slowdown in the global economy, a concern that intensified on Thursday after China announced that it would impose tariffs retaliation.
The markets are betting that the Bank of England will have to reduce its interest rates before the end of the year if Britain leaves the European Union on October 31st without a transition agreement in order to minimize its negative economic effects.
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