U.K. 10-year bond yields slide to fresh record low

Interest rates on U.K. government debt dropped to a fresh all-time low on Tuesday, as investors continued to digest the Bank of England's aggressive stimulus package unveiled last week. The yield on 10-year Gilts fell 9 basis points to 0.591%, breaking below 0.60% for the first time ever. U.K. borrowing costs have been falling steadily since the country's Brexit vote in June and on Thursday last week, yields took another dive after the BOE meeting. The central bank cut its interest rate to a record low of 0.25%, restarted its asset purchase program, and announced plans for corporate bond buys and ultracheap funding for banks. The measures have also weighed on the pound, which continued to slide on Tuesday. Sterling bought $1.2999, down from $1.3040 late Monday in New York. Against the euro [s:gbpeur], the pound dropped to €1.1722 compared with €1.1760 on Monday.

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