UK gilts future hits new high, 10-yr yield sets new low

LONDON, Aug 25 (Reuters) - UK September gilt futures
hit a contract high mid-session on Wednesday and yields in
the cash market plumbed new record lows as global bond
markets continued to power ahead on growing pessimism about
the economic outlook.
By 1333 GMT, the September gilt future FLGU0 had hit
a high of 126.93, up 88 ticks on the day. The 10-year yield
hit a new all-time low of 2.790 percent, having gone below
the previous record set in March 2009 on Tuesday.

Ten-year gilt yields have fallen by more than 140 basis
points since hitting a 16-month high in February, when
concerns about Britain's ability to reduce its record
budget deficit were at their peak. The move has been
particularly pronounced since April, when doubts over the
health of the U.S. recovery gathered pace.

--------------------- KEY MARKET
DATA---------------------------
Long Gilt futures <0#FLG:> Gilt benchmark chain
<0#GBBMK=>
Short Stg futures <0#FSS:> Cash market quotes
<GB/GILT1>
Deposit rates DM= Sterling cross rates GBPX1=
UK debt speedguide <GB/DEBT> Econ. indicator polls<ECI/GB>
--------------------KEY MARKET
REPORTS--------------------------
Gilts [GB/] Sterling [GBP/]
Euro Debt [GVD/EUR] Dollar [USD/]
U.S. Treasuries [US/] Debt reports [DBT]
-------------------- GILT STRIPS DATA
--------------------------
Gilt strips data <GB/STRIPS1> All gilt strips
<0#GBSTRIP=>
Gilt strips IO <0#GBSTRIPIO=> Gilt strips PO
<0#GBSTRIPPO=>
A list of all the strippable British gilts

<0#GBSTRIPTSY=>
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