Economy

What sets GB03Y apart is that it marks the peak of the near-term curve. At 4.929% it out-yields the one-year (GB01Y, 4.619%) and the two-year (GB02Y, 4.885%), and it does so while sitting comfortably above both the 3.75% Bank Rate and the 2.9% rate …

The key idea is duration. Because GB03Y has more duration than the one- or two-year, its price stands to move more when expectations change. That cuts both ways, but where the market becomes more confident that rates are set to fall, medium maturities like …

GB04Y is the market shorthand for a UK government bond, or gilt, with roughly four years remaining until it repays investors. Gilts areDebtinstruments issued by HM Treasury and managed through the Debt Management Office to fund government spending. When you hold a gilt, you …

GB04Y is a benchmark reference for UK government bonds, or gilts, with about four years left to maturity. Gilts are IOUs issued by HM Treasury: buy one and you lend to the government in return for fixed interest and repayment ofFace Valueat the end. …

GB01MY is the market code for the UK government's 1-month gilt, one of the shortest-dated instruments theDebtManagement Office issues. Gilts are bonds issued by HM Treasury to fund government spending, and they are regarded as among the safest sterlingAssetsbecause they carry the full backing …

GB01MY is the UK government's 1-month gilt, among the shortest-dated bonds theDebtManagement Office issues. Gilts are sterling bonds backed by HM Treasury, and at the ultra-short end they behave like Treasury bills: a place to hold cash securely for a defined, brief spell.

GB03MY is the market code for the UK government's 3-month gilt, a very short-dated instrument issued by theDebtManagement Office. Gilts are sterlingGovernment Bondsregarded as among the safestAssetsavailable because repayment is backed by the state.