The yield on 10-year U.K. government bonds dropped below 1% for the first time ever on Monday as investors scrambled for safe-haven assets after Britain voted to leave the European Union last week. Benchmark 10-year gilt yields fell 13 basis points to 0.965%, according to electronic trading platform Tradeweb. The move follows a big drop in interest rates on Friday, when the 10-year yield tanked 36 basis points at one point to 1.01%. The rise in U.K. bond prices and slump in yields come as investors fret over the U.K.’s future after 52% of voters backed a Brexit in a historic referendum last Thursday. The pound slid to a 31-year low on Friday, before trimming gains a little bit. Sterling also dropped on Monday to trade at $1.3333, from $1.3676 late Friday in New York. The U.K. currency had briefly stabilized on Monday morning, however, after finance minister George Osborne sought to calm financial markets and said the country is strong enough to confront any Brexit challenges.
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