Gilt yields hit fresh record low as markets dive

Global equity markets are tumbling this morning as the eurozone crisis once again takes centre stage, with Spain's debt costs leaping to a new record high and speculation returning Greece will exit the single currency.

As equity markets tumble, 10-year gilt yields have set a new record low of 1.444%, breaking through the previous low of 1.47%, the DMO said. US treasury yields also tumbled to a new record low of 1.41%, while German bund yields dropped to 1.13%, as investors dumped risk asets and fled to safe havens. As investors panicked, equities suffered heavy losses. The FTSE 100 fell 1.7% to 5,554, while the German Dax dropped 1.8% to 6,511. Having fallen some 5.8% on Friday, Spain's Ibex had slid a further 5.3% this morning to touch 5,905, its lowest level for 9 years. In Italy, the FTSE MIB ...