Hi koochak,
This shows the UK's total Gilt issuance:
http://www.dmo.gov.uk/reportView.aspx?rptCode=D5E&rptName=103051397&reportpage=Market_Size
As you can see, Gilt issuance has surged in recent years as the UK descends deeper into debt. Thus, a large proportion of Gilts has been issued in recent years, plus Gilts are maturing and being reissued with new coupons all the time.
Thus, falling Gilt yields help the Treasury, as they reduce the coupons on new and rolled-over bonds.
Cliff
