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Home Banking Increase in foreign investors will help to stabilise UK gilt market, and more

Increase in foreign investors will help to stabilise UK gilt market, and more

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Increase in foreign investors will help to stabilise UK gilt market By Burhan Khadbai

The Office for Budget Responsibility’s latest fiscal risks and sustainability report highlights the growing share of government debt in the hands of foreign private investors as one of the main vulnerabilities of the UK’s debt position. But this is a muddled understanding of the behaviour of foreign investors in the gilt market.

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