Gilt futures were up 40 ticks at 126.91, having rallied more than 300 ticks on Friday. Ten-year yields were down 2.8 basis points at 1.058 percent, after hitting a record low on Friday at 1.018 percent.
In a sign of how investors are pricing in the likelihood of interest rate cuts by the Bank of England, short sterling futures <0#FSS:> rose between 3 and 5 ticks across 2016 and 2017 contracts, after having rallied sharply on Friday.
The September 2016 contract was up 4 ticks at 99.57 and the December 2016 contract was up 3 ticks at 99.600.
British finance minister George Osborne said on Monday that the government had put in place robust contingency plans and there was more action that it and the BoE could take, in a bid to contain the market fallout.