UK 10-year gilt yield falls to one-year low

LONDON: Britain's 10-year government bond yield hit a one-year low of 2.506 percent on Wednesday, more than 7 basis points down on the day, as investors sought refuge in top-rated assets as tensions between Russia and Ukraine appeared to escalate.

Gilt prices rose sharply in line with German government bonds, against a supportive backdrop of weaker-than-expected British industrial output data.

Thirty-year gilt prices were also up, taking yields down to their lowest since May 2013 at 3.204 percent.

Polish Prime Minister Donald Tusk said on Wednesday the threat of a direct intervention by Russia's military in Ukraine has risen over the last couple of days.