UK Gilts Explained: The Backbone of Government Borrowing

Most investors know they should own bonds. Far fewer understand what they are actually buying — how they are priced, why they move, and what can go wrong. UK gilts are the bedrock of the British bond market, held by pension funds, insurance companies and central banks alike, yet they remain one of the most misunderstood assets in an everyday investor's portfolio.

This deep dive covers everything you need to know — what gilts are and why the government issues them, how prices and yields work, the difference between conventional and index-linked gilts, the dramatic 2022 gilt market crisis that shook pension funds across the country, and how to think about gilts as part of your own portfolio. If you have ever wondered what bond markets actually do and why they matter, this is where to start.

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