Bunds vs UK Gilts
Rédaction Financial World News · Explication pédagogique · Comment nous sourçons les rendements
Euro core versus sterling sovereign. FX, BoE vs ECB, and UK pension demand for long gilts.
Le briefing complet de ce guide est en anglais. Le titre, le résumé et la navigation sont dans votre langue pour que vous puissiez décider de poursuivre la lecture.
Bunds vs UK Gilts — the mechanics
Long gilts can look ‘cheap’ or ‘dear’ versus bunds after you hedge sterling to euro — the cross-currency basis is part of the trade. Unhedged, you are betting on GBP/EUR.
Euro versus sterling, Finanzagentur versus DMO, ECB versus BoE. Both are high-grade local-currency sovereigns. Neither hedges the other’s inflation or FX.
LDI in the UK is a gilt-curve story. German insurers live on the bund and swap curves. Copying a UK 2061 into a bund 2056 is not the same trade.
If you spend in pounds, a bund is an FX position. If you spend in euros, a gilt is an FX position.
Official sources (Germany — Bunds)
Primary statistics and prospectuses for Germany — Bunds are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Points essentiels
- Euro versus sterling, Finanzagentur versus DMO, ECB versus BoE.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- Do bunds and gilts move together?
- Often, because global rates move together. Divergences show up when UK fiscal news or ECB policy dominates.