Gilts have taken a nosedive in trading mid-morning, after a quiet start to the day, with yields on 10-year Government bonds hitting close to 4%, as markets wake up to the prospect of a hung parliament and an extended period of political uncertainty.

After a quiet first few hours for gilts trading, volumes took off at around 1000 GMT, according to market participants, with gilts taking a nosedive and sterling crumbling under pressure.