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.
Ten-year US Treasury bonds were sold at a record low yield at auction yesterday, as fears that the US economic recovery is fading mounted.
PIMCO's Bill Gross has said US debt to GDP could accelerate towards 800% over the next five years if all actual liabilities are taken into account.
Weak US jobs data has caused panic in global markets and forced US Treasury yields to fall to yet another record low.
Asian markets fell more than 1% in some regions overnight, with the wider area set for its biggest monthly drop since the financial crisis of 2008.
The latest sale of index-linked 50-year gilts was completed in record time today, as investors snapped up £4bn worth of debt.