LONDON: Benchmark 10-year gilt yields hit an all-time low on Monday after weak manufacturing data from both the United States and Britain raised concern that the econonic recovery was stalling.
Gilts rallied across the curve, but the bulk of the gains were concentrated in the 5 to 10-year sector.
Ten-year yields fell to 2.796 percent, according to Reuters data, below the previous record low of 2.836 struck last August.
"It's all about the US data and equities are wobbling again today which is driving gilts," said Francis Diamond, gilts strategist at JP Morgan.
"The worry about the US recovery translates into concerns around the European recovery. European deficit reduction plans are clearly going to be challenged if you've got a very weak global backdrop."
September gilt futures hit a contract high of 125.83, up more than 70 ticks on the day. Bund futures enjoyed similar gains.
Copyright Reuters, 2011