Gilt yields sink to record lows as investors shelter from storm

Investors are continuing to pile into gilts as fears deepen that the global economy could be teetering on the brink of a double-dip recession.

This week UK, US and German 10-year government bond yields all sank to record lows, with UK 10-year gilts hitting 2.88%, below this century's low of 2.93%. Earlier this week, the Japanese yen strengthened to a 15-year high against the dollar, suggesting investors are treating the currency as a shelter from market storms. Meanwhile, volatility in the major global stock markets and a widespread sell-off reflect investor conviction that central banks may have to implement further quantitative easing. Federal Reserve chairman Ben Bernanke will make a speech at an economic symposium at ...