United Kingdom Government Bonds

COUNTRY • UNITED KINGDOM

Last Update: 28 Jun 2022 11:15 GMT+0

The United Kingdom 10Y Government Bond has a 2.487% yield.

10 Years vs 2 Years bond spread is 39.1 bp.
Normal Convexity in Long-Term vs Short-Term Maturities.

Central Bank Rate is 1.25% (last modification in June 2022).

The United Kingdom credit rating is AA, according to Standard & Poor's agency.

Current 5-Years Credit Default Swap quotation is 12.45 and implied probability of default is 0.21%.

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Residual Maturity	Yield			ZC Price			Last Change
Residual Maturity	Last	Chg 1M	Chg 6M	Last	Chg 1M	Chg 6M	Last Change
1 month	0.879%	-12.5 bp	+75.4 bp				28 Jun
3 months	1.192%	+24.2 bp	+105.4 bp				28 Jun
6 months	1.917%	+60.7 bp	+175.3 bp				28 Jun
1 year	2.087%	+69.6 bp	+160.4 bp	97.96	-0.68 %	-1.57 %	28 Jun
2 years	2.097%	+66.3 bp	+145.2 bp	95.94	-1.29 %	-2.82 %	28 Jun
3 years	2.091%	+63.6 bp	+137.6 bp	93.98	-1.86 %	-3.99 %	28 Jun
4 years	2.197%	+59.3 bp	+151.1 bp	91.67	-2.30 %	-5.79 %	28 Jun
5 years	2.130%	+55.9 bp	+135.5 bp	90.00	-2.70 %	-6.45 %	28 Jun
6 years	2.173%	+54.0 bp	+146.0 bp	87.90	-3.13 %	-8.28 %	28 Jun
7 years	2.292%	+54.8 bp	+155.0 bp	85.33	-3.69 %	-10.14 %	28 Jun
8 years	2.325%	+54.4 bp	+151.5 bp	83.21	-4.17 %	-11.24 %	28 Jun
9 years	2.448%	+55.8 bp	+158.7 bp	80.44	-4.79 %	-13.10 %	28 Jun
10 years	2.487%	+56.3 bp	+156.4 bp	78.22	-5.36 %	-14.25 %	28 Jun
12 years	2.672%	+60.2 bp	+173.2 bp	72.87	-6.82 %	-18.47 %	28 Jun
15 years	2.770%	+57.3 bp	+166.3 bp	66.38	-8.04 %	-21.70 %	28 Jun
20 years	2.787%	+56.3 bp	+162.9 bp	57.71	-10.40 %	-27.34 %	28 Jun
25 years	2.773%	+54.8 bp	+160.1 bp	50.47	-12.52 %	-32.46 %	28 Jun
30 years	2.734%	+54.7 bp	+164.8 bp	44.52	-14.81 %	-38.44 %	28 Jun
40 years	2.562%	+51.1 bp	+161.6 bp	36.35	-18.11 %	-47.03 %	28 Jun
50 years	2.516%	+52.4 bp	+166.2 bp	28.87	-22.60 %	-55.83 %	28 Jun

Last Update: 28 Jun 2022 11:15 GMT+0

United Kingdom Yield Curve Analysis

Normally, longer-duration interest rates are higher than short-duration. So, the yield curve normally slopes upward as duration increases. For this reason, the spread (i.e. the yield difference) between a longer and a shorter bond should be positive. If not, the yield curve can be flat or inverted.
The curve convexity is measured considering some key bond durations (usually 2 years and 10 years, but also other maturities).

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Residual Maturity	Yield	Spread vs Bond					Spread vs Central Bank Rate (1.25%)
Residual Maturity	Yield	3 months	1 year	2 years	5 years	10 years	Spread vs Central Bank Rate (1.25%)
30 years	2.734%	154.2 bp	64.8 bp	63.8 bp	60.4 bp	24.7 bp	148.4 bp
10 years	2.487%	129.5 bp	40.1 bp	39.1 bp	35.7 bp		123.7 bp
5 years	2.130%	93.8 bp	4.3 bp	3.4 bp			88.0 bp
2 years	2.097%	90.5 bp	1.0 bp				84.7 bp
1 year	2.087%	89.5 bp					83.7 bp
3 months	1.192%						-5.8 bp

Focusing on 2 years Government Bond:

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2Y vs 1Y	1 bp	Yield Curve is flat in Short-Term Maturities
5Y vs 2Y	3.4 bp	Yield Curve is flat in Mid-Term vs Short-Term Maturities
10Y vs 2Y	39.1 bp	Normal Convexity in Long-Term vs Short-Term Maturities

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United Kingdom Credit Ratings

A credit rating is an assessment of the creditworthiness of a borrower (in general terms or with respect to a particular debt or financial obligation). For a deeper analysis of credit ratings, click here United Kingdom Credit Ratings History

Rating Agency	Rating	Outlook
Standard & Poor's	AA	-
Moody's Investors Service	Aa3	-
Fitch Ratings	AA-	-
DBRS	AA (high)	-

United Kingdom Interest Rates

A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans.

	Interest Rates	Value
	Central Bank Rate	1.25%

United Kingdom Credit Default Swaps

The term credit default swap (CDS) refers to a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse the lender in the case the borrower defaults.

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	Credit Default Swap	CDS Value	Var % 1W	Var % 1M	Var % 1Y	*Implied PD^()**
	5 Years CDS	12.45	+10.66 %	+17.96 %	+31.60 %	0.21 %

(*) Implied probability of default, calculated on the hypothesis of a 40% recovery rate.

United Kingdom 10Y Bond Yield Spread

The United Kingdom 10Y Government Bond has a 2.487% yield. Click on Spread value for the historical serie.

A positive spread, marked by , means that the 10Y Bond Yield is higher than the corresponding foreign bond. Instead, a negative spread is marked by a green circle.

Click on the values in "Current Spread" column, for the historical series of the spread.
Click on the "Compare" button, for a report with the full comparison between the two countries, with all the available data.

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United Kingdom 10Y vs	Current Spread	Chg 1M	Chg 6M
Japan 10Y	225.7 bp	+55.6 bp	+139.3 bp	Compare
Germany 10Y	83.2 bp	-11.6 bp	-32.7 bp	Compare
France 10Y	29.6 bp	-13.4 bp	-49.6 bp	Compare
Spain 10Y	-25.5 bp	-9.1 bp	-66.8 bp	Compare
China 10Y	-37.0 bp	+45.6 bp	+152.7 bp	Compare
United States 10Y	-76.2 bp	+5.7 bp	-20.1 bp	Compare
Canada 10Y	-97.1 bp	-10.5 bp	-41.8 bp	Compare
Italy 10Y	-119.7 bp	-22.5 bp	-102.5 bp	Compare
Australia 10Y	-133.2 bp	-0.7 bp	-66.8 bp	Compare
India 10Y	-497.0 bp	+45.6 bp	+58.5 bp	Compare
Russia 10Y	-613.3 bp	+145.3 bp	+135.9 bp	Compare
Brazil 10Y	-1029.5 bp	+21.4 bp	-51.1 bp	Compare