LONDON- Yields on ten-year British government bonds could fall to 0.2% from the current 0.5% level, if Britain crashes out of the European Union without a transition trade agreement in place, NatWest Markets said on Monday. 

The investment banking division of Royal Bank of Scotland also cut its six-month equilibrium view for 10-year gilts to 0.25%, citing a deteriorating global macro back drop and Brexit risks. But it kept its long-term view at 0.5%.

(Reporting by Virginia Furness; editing by Sujata Rao) ((Virginia.Furness@thomsonreuters.com; +44207 542 5477;))