UK 30-year gilt yield fall below 2pc to record low after inflation data

LONDON: British 30-year government bond yields pushed below 2 percent to a new record low on Tuesday after weaker-than-expected inflation data added to demand driven by uncertainty about next week's referendum on European Union membership.

British annual consumer price inflation held steady at 0.3 percent in May, according to official figures released at 0830 GMT, missing expectations for it to edge up to 0.4 percent. Core inflation also came in below target.

Thirty-year yields hit 1.99 percent at 0842 GMT, down more than 4 basis points on the day, and 10-year yields also hit a record low at 1.158 percent, 5 basis points lower.

Sterling is down 1.0 percent on the day at $1.4130, having traded at around $1.4145 just before. It was close to 8-week lows of $1.4117 on Monday.