UK gilt yields fall to all-time low

UK 10-year bond yields are now below the previous intra-day low of 2.79% seen in August 2010, having ended Monday trading at their lowest ever closing level of 2.8%. Weak manufacturing data in both the UK and the US has compounded concerns over last week's disappointing GDP figures for both countries. UK GDP figures grew at an annualised rate of 0.4% in the second quarter; US GDP rose by an annualised 1.3% and figures for the two previous quarters saw significant downwards revisions. "Of concern for investors is the real yield on these bonds. With UK RPI running at 5%, the real yie...