Bond yields hit new lows, equities slide in safe haven dash (ON NEG RATES, FED+BREXIT FEARS)

After gilt yields hit record lows on Thursday, German Bunds and Japanese bonds took up the baton with the yield on the 10-year Bund -- a benchmark for the whole of the eurozone -- almost touching the zero mark. The yield slipped to 0.015 per cent.

The introduction of negative interest rate policies by the European Central Bank and Bank of Japan is fanning the march higher in bond prices and forcing global investors to scramble for those sovereign bonds, including Treasuries, that offer juicier yields.

"The surge in foreign demand for Treasuries speaks as much to a lack of ‘safe' assets as fear of recession," said Kit Juckes, a strategist at Société Générale.

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Anxiety over the effectiveness -- and costs -- of central banks' radical policies have mounted in recent weeks, with Larry Fink, the chief executive of BlackRock, arguing the low level of yields will punish savers and hit pension plans.

Jens Weidmann, president of the Bundesbank, added to that on Friday, telling a conference that asset managers "might become increasingly nervous" over such policies and "policymakers have to take this into account in order to avoid unintended consequences".

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"We think the Fed [rate rise] is off the table next week," said Mr Pluta [global co-head of rates at JPMorgan]. "It will be a non-event and then we will get Brexit. There is a lot of uncertainty around the vote and I think the path of least resistance is a little lower in yields."