Gilt yields tumble near to record lows amid EU crisis

The yield on gilts tumbled near to record lows this morning as investors piled into any sovereigns which have retained their AAA-status after widespread EU downgrades.

The yield on UK 10-year gilts fell to within a whisker of a new record low in early trading, hitting 1.924% - close to the all-time low of 1.922% seen at the end of last year. Meanwhile German bunds saw a similar flight to safety, as the yield on 5-year bunds fell to match its previous record low of 0.733%. The yield on 10-year bunds rose marginally to 1.77%. Dutch 10-year bond yields also hit a euro-era record low of 2.064% today. The drop in yields came after Friday's move by Standard & Poor's (S&P) to downgrade the credit ratings of a host of European countries, including France...