Gilts, Index-Linked, and Undated Government Bonds

Gilts are sterling-denominated UK government securities issued by HM Treasury through the Debt Management Office. The modern market has conventional and index-linked gilts; strips separate eligible cash flows, while consols and War Loan belong to the history of undated or callable government debt.

Use the main Gilt guide for pricing, yield, accrued interest, ex-dividend settlement, RPI indexation, currency exposure, and historical terms.

Four Distinct Structures

An index-linked gilt does not hedge every measure of UK inflation. It follows RPI under its issue terms, which may use a 3-month or earlier indexation convention. A conventional gilt does not adjust for inflation at all.

Pricing Boundaries

• Coupon is cash paid on nominal value, not the investor’s yield.
• Clean price can exclude accrued or rebate interest.
• Ex-dividend status determines entitlement to the upcoming payment.
• Redemption yield assumes the security is held to maturity and coupons are reinvested under the calculation’s assumptions.
• A non-sterling investor must separate gilt return from currency translation or hedge return.
• Historical names do not establish current redemption terms.

For stripped U.S. Treasury cash flows, see Treasury STRIPS. For broader public-debt analysis, see Government Bond.

This section is educational and does not recommend a gilt, strip, sterling position, or tax treatment.

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