US Treasury yields rise above UK Gilts
Ten-year Gilt yields fell below those of US Treasuries for the first time in 15 months today as fears continued to mount that the US could default on its debts.
UK government bond yields were trading at 2.95 per cent at midday today, while US government bond yields were two basis points higher at 2.97 per cent.
The last time Gilt yields fell below Treasury yields was in April 2010.
The current prices come as senior US bankers have raised concerns that the US Federal Reserve is not taking seriously enough the threats from rating agencies to downgrade US debt if politicians fail to agree the terms of a rise to the government's debt ceiling.
Gilt yields have fallen from a peak of 3.88 per cent in February as interest rates have remained at record lows and growth has stagnated at 0.2 per cent for the second quarter of the year.