LONDON: The yield on 10-year US Treasury bonds fell to its lowest in almost three years on Thursday and the comparable UK yield fell to an all-time low, as worries over global growth and the effectiveness of central bank policy sparked huge demand for safe-haven assets.

The 10-year US yield fell to 1.6250 percent, the lowest since May 2013, and the 10-year UK gilt yield fell as low as 1.313 percent.

As the turmoil sweeping through global markets intensified - stocks and bank stocks in particular fell sharply - the US yield curve continued to flatten to 96 basis points, its flattest since late 2007.

A flattening yield curve is seen as a sign that investors are betting that future growth, inflation and interest rates will be lower.

Copyright Reuters, 2016