LONDON, March 21 (Reuters) - The yield on 10-year British government bonds fell to its lowest since September 2017 after the U.S. Federal Reserve said it no longer expected to raise interest rates this year and investors worried about the risk of a no-deal Brexit.
The yield on 10-year British gilts touched a low of 1.099 percent on Thursday while the yield on 30-year gilts extended their recent slide to their lowest since October 2016 at 1.584 percent.
The moves followed a fall in European government bond yields after the Fed’s announcement.
Worries about the possibility of a no-deal Brexit have also pushed up gilt prices.
British Prime Minister Theresa May urged lawmakers on Wednesday to back her Brexit plan after they rejected it twice previously. If she fails again next week, May faces the choice of requesting a longer Brexit delay or taking Britain out of the EU on March 29 without a transition deal to cushion the economic shock.
Demand for safe-haven gilts typically strengthens when worries grow about the outlook for Britain’s economy.
The gap between British and German bond yields was its narrowest in a month at 106 basis points on Thursday. (Writing by William Schomberg; Editing by Toby Chopra)