UK's borrowing costs near record lows as cash flees eurozone crisis
The interest rate on UK government debt fell to near-record lows as investors flocked to gilts as a safe haven from the eurozone chaos. Yields on 10-year government debt fell to 1.932 per cent last night.
Investors have increasingly been attracted to the UK due to its status as a non-eurozone state and the strength of its triple-A credit rating.
Sam Hill, a strategist at RBC, said: "It is understandable that there is demand for assets which aren't denominated in euros."
Chancellor George Osborne has long-trumpeted the low cost of borrowing as a testament to his austerity regime. While this is a contributing factor, investors also recognise that the economic crisis is likely to leave Bank of England rates low for a long time, and the low bond yield reflects that. Gilt yields are still slightly higher than those of German bonds, which also fell yesterday, to 1.541 per cent. Germany has also been sought out by investors for its safe haven status.
- 1 Russell Brand says he will 'probably' give up acting to focus on his revolution
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 David Beckham's Haig Club whisky is exactly what’s wrong with the Highlands
- 4 Queen's first tweet: Reply telling Her Majesty to 'f*** off' broadcast on BBC News
- 5 #AskNigelFarage: Twitter starts hilarious Q&A for Ukip leader
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Tony Blair 'says Ed Miliband will lose 2015 general election'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Putin: The US is to blame for almost all the world's major conflicts
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...