Sinking government bond yields in the developed world set new milestones Monday as investors continued to pile into relatively safer debt securities following the U.K.'s vote last week to leave the European Union.

The flight for safety trade in financial markets sent the yield on the 10-year U.K. government bond below 1% for the first time on record. The 10-year government yields in Japan, Germany, France, Sweden, Denmark and Switzerland all set all-time lows. Yields fall as bond prices rise.

In the U.S., the yield on the benchmark U.S. 10-year Treasury note settled at 1.461% from 1.577% Friday. It was the yield's lowest close since July 2012, when the yield closed at a record low of 1.404%.


Traders say lower global bond yields partly reflect that expectations are growing that major central banks may need to take fresh actions. Economists expect more stimulus from central banks in Japan, the U.K. and the eurozone, either via further rate cuts or other easing measures.

There is also a growing belief in the financial markets that the Fed may not be able to raise interest rates this year, especially if the U.S. growth momentum slows down.

Interest-rate futures suggest some investors started to bet that the Fed may need to reverse i ts tightening policy , showing how anxious some investors are to the potential fallout from Brexit.

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