LONDON Aug 5 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
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)