Gilts and sterling slide as hung parliament looms

Gilts and sterling are falling sharply this morning as investors react to the likelihood of a UK hung parliament.

The 10-year gilt has reversed some of its recent gains since trading began at 1am this morning, with the yield climbing 7 basis points to 3.86% by 6.30am. Sterling, which was punished against most major currencies yesterday, has fall significantly against the euro today, down 1.54% to €1.156. The pound is also continuing to slide against the dollar, dropping 0.85% to $1.466. While the Conservatives are set to win the most seats in parliament, it is highly unlikely the party can command an overall majority, with fewer than 100 of the 650 seats left to declare. "There is a little wea...