Reported 1 day ago
Investors are anticipating a significant influx of retail cash into the UK gilt market following the redemption of a popular £36 billion bond, favored by wealthy individuals to minimize taxes. This bond, with a low coupon rate of 0.25%, has prompted retail traders to seek new investments, particularly in other low-coupon gilts maturing soon. The tax advantages associated with these securities make them attractive for investors, leading to a transformation in the UK yield curve and sharp demand for low-coupon notes.
Source: YAHOO