Dart to safe havens sees yields drop to fresh lows

MORE fears about the global economy drove prices of safe-haven US government bonds up yesterday, as both US and UK yields fell.

Ten-year US Treasury yields dipped below two per cent during the day as negative data provoked a frenzy of buying.

Benchmark 10-year note yields touched 1.97 per cent, while 30-year bond yields also plunged as low as 3.34 per cent, the lowest since January 2009.

Some analysts yesterday estimated that US 10-years could drop as low as 1.75 per cent in the coming weeks.

UK 10-year gilt yields sank below 2.3 per cent, with the yields on German 10-year bunds under 2.1 per cent.