Investors piled into government bonds issued by the UK, United States, Germany and Japan as Greece’s political disarray fanned fresh fears about the future of the single currency.
Britain’s Debt Management Office saw strong demand for a new offering of 30-year debt, pushing yields to all-time lows in the auction. Sterling reached a new three-and-a-half year high of €1.2455 against the euro as traders sought refuge in perceived “safe haven” assets.
Germany’s borrowing costs also fell to a new level in a sale of five-year bonds, while yields on US and Japanese paper hovered near recent lows.
European policymakers warned