Britain suffers not only from Brexit, long-term bond yields are below 1%

Investing.com – For the first time, 30-year British government bond yields fell below 1% on Thursday, as investors panicked to buy sheltered fixed income badets, fearing a global recession .

30-year government bond yields fell 8 basis points to 0.988 percent, 10-year government bonds hit record lows of 0.414 percent, and UK 20-year government bond yields dropped at 0.85%.

WASHINGTON (Reuters) – The trade war between the United States and China has sparked investor concern over a global recession, as well as expectations of a slowdown in global economic growth.

Declining bond yields reduce the cost of new government borrowing, but at the same time suggests that financial markets expect slower growth and expected reductions in Bank of England interest rates.

Financial market badysts believe that falling bond yields will prompt the Bank of England to lower interest rates before the end of this year, if Britain leaves the European Union on 31 December. October without a transition agreement aimed at reducing the negative economic effects.

US 30-year Treasury yields fell to a record low of 2% on Thursday, and 10-year yields at their lowest level in three years as worries over the Washington-Beijing trade war persisted and by a slowdown The growth of the global economy and the likelihood that the global economy is entering recession.