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UK 10-year bond yields sink to all-time low as investors seek safe assets

LONDON, Aug 5 (Reuters) - British 10-year government bond yields sank to their lowest on record on Monday, edging past a previous low set in August 2016 as bond prices rose globally and Brexit worries continued to raise concern about the country's growth prospects.

Escalation of trade tensions between the United States and China and a weakening in China's currency past a key level of 7 yuan to the dollar lifted European debt prices broadly on Monday, pushing Dutch 30-year government bond yields into negative territory for the first time.

The 10-year yield fell more than 4 basis points to touch 0.502% at 0702 GMT, a whisker below a previous record low of 0.503% set on Aug. 15, 2016, according to Reuters data, shortly after the Bank of England announced its most recent round of bond purchases.

At 0725 GMT, the 10-year yield stood at 0.512%.

Thirty-year gilt yields dropped more than 3 basis points to 1.205%, the lowest since August 2016 while two-year gilt yields were 3 basis points down on the day at 0.39%. (Reporting by David Milliken; editing by Michael Holden)