Yields on UK government bonds fell to a record low on Thursday amid a flight to safety by investors as share markets fell on concerns about deflation and a global slowdown.
The yield on the benchmark 10-year gilt fell to 1.225%, and analysts at HSBC warned it could go as low as 1%. In the US, the 10-year Treasury yield hit a four-year low.
The swaps market is indicating that traders do not expect the Bank of England to raise rates until well into 2019. Some bond traders reckon that UK interest rates will need to be cut.
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The Independent, p. 55
