You are here: Home - Investing -

Gilt yields hit fresh record low as markets dive

0
Written by:
23/07/2012

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.

The latest flight to safety came as it emerged two regions in Spain may need bailing out, and as talks resurfaced that Greece may exit the eurozone shortly if it fails to meet the terms of its rescue plan.

Greece’s creditors meet this week amid doubts that the country will meet its bailout commitments. German Vice Chancellor Philipp Roesler said he’s “very skeptical” that European leaders will be able to rescue Greece, according to Bloomberg.

Meanwhile Spain faces the risk of a full blown sovereign bailout after talk that a second region – this time Catalonia – may need emergency funding from Madrid. Valencia has already asked for assistance, and the speculation forced Spanish government bond yields to a record high of 7.512%, according to Reuters data.

As investors panicked, equities suffered heavy losses. The FTSE 100 is currently down 1.7% at 5,517 points, while the German Dax is off 1.3% at 6,547.

Earlier Asian shares retreated on eurozone worries, with the Nikkei 225 down 1.9% at 8,510 points, and the Hong Kong Hang Seng down 3.5% at 18,984.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2193063-shark
Loan sharks to be in line of OFT bite

Consumer watchdog, the Office of Fair trading is to get new powers to allow it to clamp down on rogue...

Close