Gilt yields fall to new record low

The yield on UK gilts has fallen to a new record low during trading today, as demand for safe havens picks up once again following indecision from the Fed over expanding its stimulus programme.

By 11:50am, the bid yield on benchmark 10-year gilts fell to 1.518%, through the previous low of 1.524% set in April. Yields were down 0.053% on the day, according to Thomson Reuters data, mimicking falls seen in US treasuries following a record auction for the country's debt. The yield on 10-year US treasuries is also lower today, down at 1.488%, following its $21bn auction yesterday which attracted record interest. Gilt yields have plunged over the last year, falling from near 3%, as investors snap up bonds despite the headwinds facing both the UK and US economies. Huge debt p...