Gilt yields tumble to fresh record low

Gilt yields hit a new record low by mid-afternoon as investors continued to buy up UK debt amid concerns the European Union has not done enough to avert a financial meltdown.

The yield on the 10-year gilt dropped to a low of 2.07% this afternoon, the lowest level seen since the bonds were introduced in the 1950s, according to Thomson Reuters.  The yield has beaten its previous record low of 2.08%. Yields retreated sharply following the European summit, with investors disappointed with the lack of progress in dealing with the eurozone debt crisis. Mounting concerns Europe will fail to implement a plan to tackle debt levels across the peripheral nations and instill some fiscal discipline has once again panicked investors. The rush towards safe haven asset...