A quick spike in oil prices reignited inflation worries and triggered a global bond selloff. That sent UK 10‑year yields to their highest level since 2008 and pushed 30‑year rates to territory last seen in 1998. Analysts said the midweek jump in yields likely enticed retail savers into the market.
Tuesday was the busiest day of the year on the Freetrade bond platform run by IG Group Holdings Plc, measured by both the number of orders and total value. Low‑coupon gilts ranked among the favorites, Freetrade noted, and the platform counts 1.6 million registered UK users. "Higher yields have made gilts attractive to retail investors seeking to diversify beyond equities and lock in more predictable, tax-efficient returns," said Alex Pugh, an analyst at Freetrade.
Hargreaves Lansdown reported a similar surge. Its most frequently traded issue was a 5.375% gilt maturing in 2056, and low‑coupon bonds due in 2028 and 2061 also saw substantial buying. According to the firm, UK bond buying on the platform reached its highest level since May 15.
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Higher yields are pulling more everyday investors into gilts, and the latest burst of activity suggests efforts to broaden retail participation are starting to work. Households still hold less than 4% of outstanding UK government bonds, but brokers say buying is steadily increasing, largely because yields have risen.
Low‑coupon debt has been a standout because a bigger slice of the return can come from capital gains, which are exempt from tax, rather than from taxable coupons. Those bonds can look even more appealing when prices drop, since that increases the scope for capital appreciation. "This points to different motivations for investing," said Hal Cook of Hargreaves Lansdown, where he is a senior investment analyst.
Zooming out, Winterflood Securities says its retail gilt trading is up 53% year over year so far, and the firm expects 2026 to be its strongest on record for UK government bonds. The renewed interest indicates early progress in widening retail participation in the UK bond market.
