Post Brexit woes continued to hit the Pound yesterday after news emerged that the return on some UK government debt turned negative after the Bank of England missed its target in a new bond buying operation.
The Bank had offered to buy government bonds, or gilts, as part of its new quantitative easing (QE) programme to stimulate the economy. But the bank fell £52m short of its £1.17bn target when it failed to find enough sellers.
Traditionally buying government bonds would be considered a safe investment but on Wednesday morning gilts maturing in 2019 and 2020 were yielding -0.1%. The Bank of England has been buying gilts at auctions in the market since 2009 in its QE programme to push money out into the banking system, to be lent onwards to businesses and individuals.
This is the first time it has not been able to buy as many gilts as it planned.
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