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UK gilts surge, 10-year yield at record low as equities dive
August 5, 2011 / 7:36 AM / in 6 years

UK gilts surge, 10-year yield at record low as equities dive

LONDON, Aug 5 (Reuters) - British gilt futures rallied almost a full point to a contract high and the yield on 10-year gilts fell to a record low on Friday as investors piled into safe-haven assets on fears of a renewed downturn in the global economy.

U.S. stock markets suffered their steepest declines in two years on Thursday and Asian stock markets also dived overnight as worries about the worsening financial crisis in Europe compounded anxiety over a weak U.S. economy.

By 0719 GMT, September gilt futures were 66 ticks up at 127.51, having leapt almost a full point shortly after the open to 127.82.

In the cash market, the yield on 10-year gilts was almost 8 basis points down at 2.615 percent, having hit a record low 2.59 percent.

Reporting by Fiona Shaikh

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