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U.K. sells first government bond with a negative interest rate


I read in the news that U.K. sells first government bond with a negative interest rate. My question is who is going to buy a bond which has a negative interest rate? Why would an investor buy something which gives a loss to them instead of a profit?

Thank you
The return on a Bond has 2 components. The amount paid back at the end of the term and the interest payments during the term.

So if I sell you a bond for $100 and the bond cashes out at $90 in ten years time then it looks like a terrible deal because you're losing money. However if I'm paying you $1/month interest (12% uncompounded) then that's a roaring deal for you.

In this case the British government will cash the bond out at a lower value but it's paying 0.75% on these bonds and that is the return that the investors will realize so they won't really be losing money.
Crud... I did not see the previous reply... mine is rudundant and I don't know how to delete this post.... LOL...
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