Britain’s debt is proving popular with foreign investors rushing in to buy UK gilts.
A record £28.2 billion was purchased in March, according to figures from the Bank of England. This was the largest monthly inflow of cash to the country since records were started in 1982.
Analysts had warned that the uncertainty around the forthcoming general election could put investors off, but it seems higher yields overcame any hesitancy.
The UK may continue to enjoy additional investment funds going into the country as a result of the European Central Bank’s quantitative easing programme.
The Bank’s initiative will see €60 billion every month used for buying bonds.
A strategist at Deutsche Bank said the UK was an "obvious beneficiary" of the ECB's bond-buying programme because it has forced up bond prices and lowered yields across the eurozone. "The spread between 10-year UK and German yields is currently the widest on record," he said.
