U.K. Credit Rating Cut to AA by S&P With Negative Outlook

The United Kingdom has been downgraded from AAA to AA by Standard and Poor's, with a negative outlook. Despite this, the bond market shows a different reaction, with UK gilt yields dropping below 1% for the first time. This indicates a strong demand for safe-haven assets, not only in the UK but also in Japan and Germany. The downgrade is seen as a loss of prestige for the UK, but the market's response suggests continued confidence in UK government debt.

How did the bond market react to the downgrade of the UK's credit rating?

What does the loss of the AAA credit rating signify for the United Kingdom?