On Wed 13th July 2016, the UK Government raised £1.25 Billion pounds to fund the deficit. HM Government spends more than is earned in taxes and duties collect.

The interest rate (coupon paid to investors in the debt is NEGATIVE)

http://www.dmo.gov.uk/documentview.aspx?docName=/gilts/press/130716index.pdf

13-Jul-2016 0 1/8% Index-linked Treasury Gilt 2026 £1,250.0000 Million: Interest -1.578%

You need to understand what this means to the debt holder.

So if someone bought say a chunk of £1,000,000 (£1m). After ONE year there £1,000,000 becomes £984,220

They loose £15,780.

What this effectively means that your money is reducing each year by 1.578%.

The auction of this £1.25 Billion of debt was over subscribed.

Another way of understanding this logic is that clearly there are investors who are willing to pay the UK Government to hold their money.