Bruce Anstey decimated the opposition to win the Merchandise Motorsport Formula 1 Classic TT on the ex-Grand Prix YZR500 Yamaha.

The Kiwi had topped the times during practice on the Mountain Course and destroyed his rivals on the exotic two-stroke racer, coming home to win by 1m12.360s ahead of James Hillier in the three-lap race.

Anstey - the fastest road racer in the world with lap records at the Isle of Man TT and Ulster Grand Prix - smashed Michael Dunlop's lap record with a speed of 123.894mph from a standing start.

Last year's winner Dunlop, who had been in second place but 15 seconds down on the veteran New Zealand rider at the end of his sensational opening lap, later began to drop back with an apparent misfire on the Team Classic Suzuki XR69 and retired in the pits at the end of the penultimate lap.

It was a stunning performance by Anstey, who grabbed the limelight throughout practice week on the Valvoline Padgetts-backed former factory Grand Prix racer.

And he didn't disappoint, making full use of the tools at his disposal to secure a resounding success on the 37.73-mile Mountain Course in warm sunshine as he continued his excellent form from the Ulster Grand Prix, where Anstey claimed the 'Man of the Meeting' award after a Superbike and Supersport double.

Russ Mountford finished in third place but only 1.063 seconds ahead of Steve Mercer as the pair battled it out on the final lap for the final rostrum place.

Anstey had already opened a lead of three seconds at Glen Helen on lap one over Dunlop, which he extended to 12 seconds at Ramsey.

Six of the top eight riders opted to make their single pit stop at the end of the first lap, with Hillier and Mercer adopting a different strategy as they powered straight through before coming in for fuel on lap two.

This gave Hillier a false lead on lap two at Glen Helen of 19 seconds over Mercer, with Anstey a further five seconds behind and Dunlop 17 adrift of his main rival in fourth.

However, it was all change when Hillier made his scheduled stop at the end of lap two, with Anstey now leading by 53 seconds at Glen Helen and the race firmly in his hands barring a mechanical problem.

The 45-year-old was clearly enjoying himself on track with the front wheel of the YZR pawing the air and he increased his advantage to 1m 12 seconds by the time he completed the final lap.

Lee Johnston, who won the Okell's 350cc race earlier in the day, Ryan Farquhar on Roger Winfield's Harris F1 Yamaha and Kiaran Hankin were the top six.

Welsh rider Ian Lougher (Brian Scott Racing TZ250 Yamaha) won the concurrently run Formula 2 race to bag a double after his win in Saturday's Bennetts 500cc race.

Lougher took the win from Chris Moore and Stuart Garton.