QUICK DEFINITION
Gilts is government bonds issued by the United Kingdom.
WHY IT MATTERS
Why Gilts matters in bond markets
Gilt yields are key benchmarks for sterling interest rates, UK funding costs and domestic fixed-income valuation.
MARKET CONTEXT
How to think about it
Bond investors use gilts as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Gilts important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Gilt yields are key benchmarks for sterling interest rates, UK funding costs and domestic fixed-income valuation.