June gilts continue to make fresh contract highs as investors pour into 'safe-haven' assets as the euro zone crisis intensifies. The UK bond market received a bullish push earlier from the MPC meeting with the May minutes showing that several members of the committee came close to voting for additional QE. Additionally, April retail sales data showed the biggest decline in more than 2 years, fueling worries over the strength of the UK economy. The June gilt contract is 1.15 points higher at 119.54, having hit an intra-day high of 119.64, while the yield on the 10-year cash is down 11bps to 1.765%.
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