Gilts

Gilts refer to UK Government bonds, that is all types of government coupon bonds. The Gilts market is the major borrowing source for the UK Treasury. Gilts account for over 60% of the total UK national debt. The gilts market is one of the most liquid and well-organized government bond markets in the world. Foreign buying is particularly strong in this market due to low inflation of the UK economy. The UK bond market is the 4th largets after, US, Japanese and Italian markets. The net issue of debt in any given year depends on the state of the UK's public finances (surplus/deficit) and on the amount of debt in the given year that will be redeemed.