Gilt yields fell to a new record low yesterday as investors sought out safe havens from the eurozone crisis.
The yield on the 10-year gilt dropped to a low of 2.106% at one stage yesterday, the lowest level seen since the bonds were introduced in the 1950s. Investors have rushed to gilts in the last few weeks, bringing the yield on the benchmark note down from over 2.6% in recent weeks. Today gilts were trading at 2.253%. The move counters views from a number of investors who expect yields to rise from historic lows given the country's debt pile and low growth forecasts. Bill Gross has warned gilts are resting on a "bed of nitroglycerine", while top performing fund managers including F...
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