UK gilt yield hits record low, Treasury yields drop to 4-yr lows

UK gilt yields and US treasury yields fell sharply on Monday after the ratings agency S&P downgraded UK’s credit rating to AA, from AAA.

The benchmark 10-yr gilt yield fell below 1% for the first time. The yield recorded a low of 0.934%.

Across the pond, the 10-yr treasury yield dropped 11.6 basis points 1.461%, the lowest level since July 2012. In Germany, the 10-year bund yield suffered a record closing low of -0.115%.

The demand for safe haven government bond yields increased after markets were caught off guard by Britain’s decision to exit EU.