Gilts in motion: UK: Rates Strategy

研报英文原文证据摘录

Gilts in motion: UK: Rates Strategy

FICC Research

Interest Rates

2 July 2026

UK: Rates Strategy

Gilts in motion

The latest gilts holdings data show a market that is

increasingly dominated by yield-sensitive buyers. The degree

of sensitivity will vary but the upcoming FPC meeting brings Moyeen Islam +44 (0) 20 7773 4675

into focus the possible demand response from a banking moyeen.islam@barclays.com

sector that has become a notable buyer of gilts Barclays, UK

The publication of the Q1 26 gilt holdings data, as well as the higher frequency monetary

aggregates data, allows the market to look at the most recent gilt ownership trends alongside

most recent flows related to the outbreak of the Middle East conflict. Figure 1 shows a snapshot

of the share of the overall market held by major investor groups at the end of QE (Dec 2021), at

the end of 2024 and at end-Q1 26. A number of points are clear. There has been significant

growth in the share of the market held by the banking sector and domestic non-bank financial

institutions, rising from 4% to 11% and 7% to 19%, respectively. Over the same period, the share

of the market owned by pension funds and insurance companies has fallen from 27% to 20%.

Overseas investors are now the single largest holders of gilts by share (34%). The increase in gilt

ownership by more yield-sensitive accounts puts an emphasis on the need for a credible policy

framework. With a new prime minister, potentially a new chancellor and possible changes to the

institutional framework for policy making and policy delivery, the increased sponsorship that

the market has had from these account bases means that the next phase of the current

administration will be closely monitored in terms of both policy direction and outcomes.