Bonds rose as stock markets across Europe were mixed, on concerns about a slower-than-expected economic recovery.
Gilts, which tend to lose value as the economy expands and inflation eats savings, rose, pushing down the yield of Britain's 10-year government bond to 3.3%, two basis points lower.
The UK is benefiting from the credit woes in Europe, as investors see government bonds as a save heaven. The yield of 10-year Spanish bonds currently trades at a higher 4.5%, whilst Italy's is traded at 4%.
More concern about potential risk drove investors away from gold, which reached records last month. The precious metal eased below $1,210 an ounce, following months of ascent, pushed by financial investors seeking an alternative to turbulent credit and equity markets.
