Gilt trades rise again - should you back government bonds?

Investment platforms are reporting continuing interest in gilts. What is driving demand?

investment graph
(Image credit: Getty Images/Witthaya Prasongsin)

Investors flocked to gilts again in February but it is not just the income they are searching for.

Government bonds, particularly short maturity or low coupon gilts, have been popular since the aftermath of the mini-Budget in 2022 and also as the Bank of England hiked interest rates in 2023.

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.