gilts

Yields on UK government debt are trading at an all-time low amid fresh panic in Europe, which has sent equity markets reeling.

Yields on UK debt were heading towards record lows in morning trading as worries over election results in Europe and news Spain may be forced to prop up its banking system spooked investors.

Threadneedle's Jim Cielinski said investors concerned about a jump in government bond yields should instead prepare themselves for a long period of financial repression.

QUANTITATIVE EASING

UK banks were making solid gains early this morning, lifting the wider FTSE 100 index, having been sold-off yesterday on eurozone fears.

THE BIG QUESTION

The government's plans to issue gilts with a maturity greater than 50 years, or even with a never-ending life, have been criticised as little more than a 'gimmick'.

Chancellor George Osborne has confirmed the government will consult on launching perpetual gilts and gilts with a life longer than 50 years, despite a wave of criticism from potential investors.

100-YEAR GILTS

The longest losing streak for 10-year US treasuries since 2006, coupled with a marked rise in other ‘safe haven' bond yields, poses some difficult questions for bond investors.