UK gilt sell off faster than 2009 on election fears

Anna Fedorova
clock

Foreigner investors have been selling UK gilts at a faster rate than at the peak of the financial crisis in 2009, ahead of an unpredictable general election.

According to data from the Debt Management Office, non-residents sold £14bn worth of gilts during January and February, a higher amount than in early 2009. The bid-to-cover ratio at gilt auctions has fallen to a six-year low of 1.19 on five-year debt, having continuously slipped over the past nine months. Yields on 10-year UK government bonds have slightly increased from a low of 1.33% in January to 1.55%, but remain near historic lows. The Telegraph quotes Nomura as saying large Japanese investors are avoiding UK gilts, with bond money flowing into the US and Asia instead. The ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

BlackRock unveils set of iShares bond UCITS ETFs

BlackRock unveils set of iShares bond UCITS ETFs

iBonds surpass $6.3bn AUM in EMEA

Cristian Angeloni
clock 07 November 2024 • 1 min read
Four Graphs explaining 'what happened to the year of the bond'

Four Graphs explaining 'what happened to the year of the bond'

Four experts write

Investment Week
clock 06 November 2024 • 3 min read
UK gilt yields hit 2024 high as investors mull over Budget borrowing

UK gilt yields hit 2024 high as investors mull over Budget borrowing

10-year gilt yield rises to 4.45%

Valeria Martinez
clock 31 October 2024 • 2 min read
Trustpilot