Investing.com - The U.K. saw borrowing costs fall to a record low at an auction of 10-year government bonds on Thursday, as investors piled in to safe haven assets amid growing fears over the global economic outlook.
The U.K.’s Debt Management Office sold the full targeted amount of EUR3.5 billion worth of 10-year government bonds at an average yield of 1.719% earlier in the day, the lowest yield on record and down from 1.920% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.2 times versus a "bid-to-cover" ratio of 1.63 in June.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Meanwhile, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.18% to trade at 1.5475.
European stock markets remained broadly lower. London’s FTSE 100 shed 0.65%, the EURO STOXX 50 declined 0.6%, France’s CAC 40 slumped 0.4%, while Germany's DAX dropped 0.7%.
The U.K.’s Debt Management Office sold the full targeted amount of EUR3.5 billion worth of 10-year government bonds at an average yield of 1.719% earlier in the day, the lowest yield on record and down from 1.920% at a similar auction last month.
Demand was strong, with bids exceeding supply 2.2 times versus a "bid-to-cover" ratio of 1.63 in June.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Meanwhile, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.18% to trade at 1.5475.
European stock markets remained broadly lower. London’s FTSE 100 shed 0.65%, the EURO STOXX 50 declined 0.6%, France’s CAC 40 slumped 0.4%, while Germany's DAX dropped 0.7%.