LONDON: Ten-year British government bond yields fell to a record low on Thursday, driven down by the U.S. Federal Reserve underlining it will be "patient" in raising interest rates, as well as by uncertainty about the new Greek government's reforms.
The 10-year gilt yield sank below 1.4 percent for the first time, breaking a record which had held since the depths of the euro zone debt crisis in July 2012, and reached a trough of 1.396 percent at 1113 GMT according to Reuters data.
At 1125 GMT it was down 5 basis points on the day at 1.41 percent.
"In the morning gilt prices caught up with the price action overnight with Treasuries after the FOMC," said Vatsala Datta, strategist at RBC, referring to Wednesday's Fed statement.
Long-term U.S. bond yields slid late on Wednesday as some investors focused on the Fed's reference to international developments and weak inflation, which they judged might cause it to delay tightening policy.
And safe-haven German Bunds rallied on Thursday as worries over Greece's new anti-bailout government buoyed demand for top-rated assets.
Datta also said some British government bond investors had been waiting until Wednesday's syndication of the 2058 inflation-linked gilt was out of the way before moving back into the gilt market. A relative lack of gilt issuance in February should help support prices in coming weeks.
Twenty- and 30-year gilt yields also touched new record lows of 1.921 percent and 2.102 percent respectively.
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