Statistics published by the Bank of England, showed that international investors have been consistent and strong buyers of British government debt securities (gilts) for the past six months. According to the data, the net average monthly purchase of gilts by foreign investors amounted to 8 billion pounds for the six months ending in August, at an annual rate of almost 100 billion pounds. One explanation for such a craving for shopping, in addition to relatively attractive interest rates, this is confirmation of the coalition of fiscal consolidation. Yield of 10-year gilts has fallen significantly this year from a peak of 4.27% in February to 2.95% now.
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