Gilt yields fall to all-time low

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

Key indices made sharp losses across Europe and the UK as yields on benchmark ten-year gilts reached their lowest ever levels of 1.888%, down 0.039% on the day. The move has left them trading below the previous record low close of 1.92% seen in January, while they have also set a new intra-day low point, the Debt Management Office (DMO) said. "Sentiment generally now is a risk-off flight to quality, and the 30-year auction this morning had 2.22 times cover, above the recent trend." The move lower started late last week and has been exacerbated by the failed Greek elections, as well...

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