Gilts

Sliding share prices put UK government bonds in the spotlight as investors sought out safe-haven alternatives to equity markets.

Friday’s heavy falls on Wall Street and a nervous start in London gave gilts a boost in early trade. But larger gains were short-lived as Wall Street sprung into action and headed higher.

Both short and long-dated bonds rose, but ended well short of session highs.

The fall in the FTSE 100 index came as oil prices rose to nearly $69 a barrel, further fuelling bond gains. But easing oil prices towards the end of the session dampened bond prices. Buying by pension funds underpinned gains on long-dated gilts.

The March gilt future closed 13p higher at £115.13. Treasury 4¾ per cent 2010 rose 12p to £102.30, with Treasury 4¼ per cent 2036 up 79p at £108.91.