Investors lift UK firms to top spot in bond market

UK corporate debt returned 3.25% last month, the most in a year and the best among the 10 countries that dominate the $6.2 trillion (£4 trillion) index monitored by Bank of America Merrill Lynch.

Tesco, the nation's largest supermarket chain, and Santander's Abbey National unit led the gains, returning as much as 12.7%.

The Government plans to slash the deficit from a record 11% of gross domestic product last year to 2.1% by 2015 through tax rises and spending cuts.