Short-Term vs Long-Term UK Gilts
Uredništvo Financial World News · Edukativni objašnjavač · Kako prikupljamo prinose
Short gilts have less duration risk; long gilts offer more price volatility and, often, more yield. UK pensions famously hold the longs.
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Short-Term vs Long-Term UK Gilts — the mechanics
A two-year gilt is mostly a cash substitute with a little rate risk. A 2060s gilt is a leveraged bet on long-term sterling yields — useful for liability matching, harsh if you need to sell in a rate spike.
A 2027 gilt barely notices a 50bp long-end sell-off. A 2061 gilt does. Short-dated gilts are cash-like with a little duration; longs are duration machines with a gilt coupon attached.
Reinvestment risk is the opposite problem: a 1-year gilt must be rolled every year at unknown future yields. A 20-year locks the rate and accepts price volatility.
Barbells (shorts plus longs) and bullets (one maturity cluster) are portfolio design, not morality. Match the date you need pounds.
Official sources (UK Gilts)
Primary statistics and prospectuses for UK Gilts 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.
Ključni zaključci
- A 2027 gilt barely notices a 50bp long-end sell-off.
- 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.
Česta pitanja
- Why do UK pensions buy ultra-long gilts?
- To match long-dated pension promises. That demand can keep long yields below what a simple rate forecast would suggest.