Poor performance and fears of inflation have resulted in a crash of confidence in UK government bonds from retail investors, although gilt prices bounced back slightly in February as a result of the crisis in North Africa and fears of an interest rate hike.

Out of 10 asset classes, UK retail investors cited gilts as the one they would most likely sell, as of January 2011. Only 9% of those surveyed by data firm dianomi wished to increase their holdings.