British govt bond yields hit 3-yr lows after Trump tariff threat on China

LONDON: British government bond yields opened sharply lower on Friday with the UK's 10-year benchmark bond yield falling almost six basis points to its lowest since August 2016.

The move tracks the broader drop in global bond yields after U.S. President Donald Trump on Thursday vowed to slap new tariffs on Chinese goods from Sept. 1, fuelling global risk aversion and increasing bets on further monetary easing.

Five-year British government bond yields were down five basis points to 0.31%, their lowest since early 2017.