Gilt yields fall to record low as EU referendum looms

FTSE also down over 1%

The yield on ten-year UK government bonds has fallen to a record low of 1.22% today, as the upcoming vote on Britain's membership in the EU weighs on investor sentiment.

The yield on ten-year gilt yields fell to 1.22%, after previously hitting 1.226% in February 2016 - the lowest level since Bloomberg began collecting data in 1989. With the EU vote just a fortnight away, and polls not giving a clear indication of the outcome, investors have been seeking safe havens in bonds, while the European Central Bank buying up corporate bonds on the continent has also helped push yields lower. Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "While all eyes have been on the EU referendum campaign, gilt yields have been slipping, fast. "The US Federa...