UK banks buy 91% of new gilts in six months to April

2nd June 2011

Banks and building societies bought £7.7 billion of the £12.8 billion of new gilts sold in April. Over the last six months, their purchases have totalled £36.1 billion, up from £11.4 billion in the prior half-year and equivalent to 91% of net issuance of £39.8 billion.

Overseas buying of gilts, by contrast, fell to £12.4 billion in the six months to April from £33.5 billion in the prior half-year, probably reflecting a slowdown in capital flight from struggling peripheral Eurozone economies. Non-bank domestic investors, meanwhile, sold £8.2 billion of gilts in the latest six months.

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