Gilts sink as market opens after UK downgrade

LONDON: British government bond futures dived on Monday in the first trading since ratings agency Moody's was the first major agency to strip Britain of its triple-A debt rating late on Friday.

The June gilt future touched a low of 115.50, some 56 ticks down from Friday's settlement close, before paring losses to trade 50 ticks down on the day at 115.56 at 0811 GMT. The equivalent Bund future was 20 ticks lower.

Ten-year gilt yields rose 5 basis points to 2.16 percent with the yield spread against German debt widening by 3 basis points to just over 57 basis points.