UK government bond yields fall to record levels

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UK government bond yields fall to record levels

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 slowdown in growth and an expected rate cut from the Bank of England.

30-year government bond yields fell to 0.988%, down eight 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 retaliatory tariffs .

The markets are betting that the Bank of England will have to cut interest rates before the end of the year, if Britain leaves the EU on October 31 without agreement, in order to allow a transition to minimize negative economic effects.