UK Bond Market Readies for £18 Billion Retail Investment Rush

UK bonds with the most favorable tax terms are outperforming as investors look to get ahead of an expected rush from retail traders.

Gilts with short maturities and low coupons rallied heading into the end of last week, amid elevated trading volumes. Such securities are preferred by wealthy Brits because they offer greater tax-adjusted returns than higher-coupon gilts, thanks to a quirk in UK tax policy.