Govt bond yields slide as 'fear' grips globe

Government bond yields have continued to dive today as ‘fear' grips global risk assets.

As European equity markets plummet more than 2% in midday trading, bond investors continue to pursue a ‘flight to safety' - namely bunds, treasuries and gilts. The 10-year gilt yield has fallen 0.03% to 3.55% at 12:15pm, while the 10-year treasury is 0.04% lower to 3.25% and the 10-year bund has dipped 0.06% to 2.6%. Peripheral Europe continues to sell-off as investors move away from the stricken euro, with yields on the 10-year Greek and Spanish bonds up 0.11% and 0.04% respectively. The euro has been pounded in Tuesday trading, falling 1.2% against sterling and 1.4% on the dollar...