selling to finance their deficits but also the bonds that central banks are no longer buying. This extra demand could push up yields.
So, should UK retail investors buy government bonds? The answer is, of course, it depends. If you are worried about the risk of inflation eroding the value of your investment, then index-linked bonds might be the way to go. If you are looking for a safe haven in times of market turmoil, then traditional government bonds could be a good option.
Ultimately, the decision to invest in government bonds should be based on your individual financial goals, risk tolerance, and investment horizon. It is always a good idea to consult with a financial advisor before making any investment decisions.