British government bond yields hit a 6-week low on Friday in thin trade before Christmas holidays, shrugging off stronger-than expected British growth data and instead taking their lead from signs of progress in Italy's banking troubles.
Ten-year gilt yields dropped as much as 4 basis points on the day to 1.333 percent at 1210 GMT, a level last seen on November 10 when yields were climbing rapidly due to inflation worries after Donald Trump's US election victory.
Five-year, 20-year and 30-year yields showed similar moves. Italian 10-year bond yields were also down 4 basis points on the day, as Monte dei Paschi said it would request aid from a newly-approved state fund to help struggling banks.
The request from the world's oldest bank came after a private rescue was hampered by political turmoil caused by a referendum this month that led to the resignation of former Prime Minister Matteo Renzi.
With other Italian lenders looking fragile, the new administration of Paolo Gentiloni is looking to end a protracted banking crisis that has gummed up the economy.
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