British corporate bonds beat global counterparts last month as investors gained confidence in the UK's economic recovery.
UK corporate debt denominated in all currencies returned 3.25% last month, the most in a year. It was also the best among the 10 countries making up almost 90% of the $6.2trn Bank of America Merrill Lynch Global Broad Market Corporate Index, Bloomberg reports.
Santander's Abbey National and supermarket giant Tesco led the gains, returning as much as 12.7%.
The spread for UK corporates over benchmark government bonds narrowed four basis points to 237 in August, compared to a six basis point rise for US company debt.
UK government bonds also rallied strongly, returning 4.7% last month, second only to Denmark's 4.75%, according to BoA Merrill Lynch data.
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