United Kingdom Government Bonds - Yields Curve

COUNTRY • SUMMARY
UNITED KINGDOM
Last Update: 14 Jun 2024 5:23 GMT+0

The United Kingdom 10-Year Government Bond currently offers a yield of 4.131%. This yield reflects the return investors can expect if they hold the bond until maturity. Government bond yields are critical indicators of economic confidence and investor sentiment.

The spread between United Kingdom 10-Year and 2-Year government bonds is -9.2 basis points (bp). This spread is a measure of the difference in yields between long-term and short-term government debt. Long-term yields should be greater than short-term ones.
Current analysis: Yield Curve is inverted in Long-Term vs Short-Term Maturities.

United Kingdom Central Bank Rate stands at 5.25%, following the most recent adjustment in August 2023.

According to Standard & Poor's agency, the United Kingdom credit rating is AA.

The current quotation for United Kingdom 5-Years Credit Default Swap is 25.20 basis points. Correspondingly, the implied probability of default is 0.42%.

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United Kingdom Yield Curve

If data are not all visible, swipe table left
Residual
Maturity
Yield ZC Price Last
Change
Last Chg 1M Chg 6M Last Chg 1M Chg 6M
1 month 5.275% +0.9 bp +1.5 bp 14 Jun
3 months 5.263% +2.9 bp -3.0 bp 14 Jun
6 months 5.282% +6.9 bp -0.4 bp 14 Jun
1 year 4.678% +4.8 bp -32.7 bp 95.53 -0.04 % +0.32 % 14 Jun
2 years 4.223% -8.3 bp -11.6 bp 92.06 +0.16 % +0.22 % 14 Jun
3 years 4.123% -1.3 bp +15.5 bp 88.58 +0.03 % -0.45 % 14 Jun
4 years 4.168% +0.2 bp +39.8 bp 84.93 -0.01 % -1.52 % 14 Jun
5 years 4.008% -4.2 bp +19.8 bp 82.16 +0.20 % -0.95 % 14 Jun
6 years 3.981% -0.1 bp +26.6 bp 79.12 +0.01 % -1.52 % 14 Jun
7 years 4.003% -0.1 bp +33.4 bp 75.98 +0.01 % -2.23 % 14 Jun
8 years 3.999% -2.3 bp +25.8 bp 73.07 +0.16 % -1.97 % 14 Jun
9 years 4.075% -3.0 bp +36.2 bp 69.80 +0.26 % -3.10 % 14 Jun
10 years 4.131% -2.9 bp +34.1 bp 66.71 +0.27 % -3.23 % 14 Jun
12 years 4.226% -3.0 bp +27.3 bp 60.85 +0.35 % -3.11 % 14 Jun
15 years 4.418% -1.6 bp +29.4 bp 52.28 +0.23 % -4.14 % 14 Jun
20 years 4.591% +0.2 bp +34.3 bp 40.75 -0.02 % -6.36 % 14 Jun
25 years 4.611% +0.7 bp +34.0 bp 32.40 -0.18 % -7.82 % 14 Jun
30 years 4.650% +1.1 bp +35.6 bp 25.58 -0.31 % -9.71 % 14 Jun
40 years 4.575% +1.1 bp +37.4 bp 16.71 -0.42 % -13.33 % 14 Jun
50 years 4.186% -1.8 bp +29.8 bp 12.87 +0.86 % -13.33 % 14 Jun
Last Update: 14 Jun 2024 5:23 GMT+0

United Kingdom Yield 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).

If data are not all visible, swipe table left
Residual
Maturity
Yield Spread vs Bond Spread vs
Central Bank
Rate (5.25%)
3 months 1 year 2 years 5 years 10 years
30 years 4.650% -60.0 bp
10 years 4.131%
-111.9 bp
5 years 4.008%
-124.2 bp
2 years 4.223%
-102.7 bp
1 year 4.678%
-57.2 bp
3 months 5.263%
1.3 bp

Focusing on 2 years Government Bond:

If data are not all visible, swipe table left
2Y vs 1Y -45.5 bp Yield Curve is inverted in Short-Term Maturities
5Y vs 2Y -21.5 bp Yield Curve is inverted in Mid-Term vs Short-Term Maturities
10Y vs 2Y -9.2 bp Yield Curve is inverted in Long-Term vs Short-Term Maturities

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 -

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 5.25%

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 25.20 +4.18 % -4.22 % +36.73 % 0.42 %
(*) 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 4.131% yield.

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.
If data are not all visible, swipe table left
United Kingdom 10Y vs Current Spread Chg 1M Chg 6M Compare
Countries
vs Japan 10Y 319.3 bp -1.5 bp +6.2 bp
vs China 10Y 183.1 bp -2.6 bp +70.8 bp
vs Germany 10Y 166.1 bp +4.1 bp -1.4 bp
vs France 10Y 95.2 bp -16.0 bp -18.8 bp
vs Canada 10Y 77.8 bp +33.8 bp +16.5 bp
vs Spain 10Y 75.2 bp -9.2 bp +4.6 bp
vs Italy 10Y 8.6 bp -19.4 bp +11.4 bp
vs Australia 10Y -6.3 bp +16.3 bp +24.5 bp
vs United States 10Y -13.5 bp +15.4 bp -0.5 bp
vs India 10Y -284.9 bp +10.0 bp +55.5 bp
vs Brazil 10Y -796.9 bp -51.4 bp -104.7 bp
vs Russia 10Y -1100.9 bp -13.9 bp -211.4 bp

United Kingdom Government Bonds Prices

Price Simulation: bonds with a face value of 100, with different coupon rates.

The highlighted column refers to the zero coupon bond.
Click on for a forecast of the yield.
If data are not all visible, swipe table left
Residual
Maturity
Yield Bond Price - with different Coupon Rates Fx
0% 1% 3% 5% 7% 9%
50 years 4.186% 12.87 33.68 75.31 116.94 158.57 200.20
40 years 4.575% 16.71 34.91 71.33 107.74 144.15 180.56
30 years 4.650% 25.58 41.58 73.59 105.60 137.61 169.62
25 years 4.611% 32.40 47.06 76.38 105.70 135.02 164.34
20 years 4.591% 40.75 53.65 79.47 105.28 131.09 156.90
15 years 4.418% 52.28 63.08 84.69 106.29 127.89 149.49
12 years 4.226% 60.85 70.12 88.64 107.17 125.70 144.22
10 years 4.131% 66.71 74.77 90.89 107.00 123.12 139.24
9 years 4.075% 69.80 77.21 92.03 106.85 121.67 136.49
8 years 3.999% 73.07 79.81 93.27 106.74 120.21 133.67
7 years 4.003% 75.98 81.98 93.98 105.98 117.99 129.99
6 years 3.981% 79.12 84.36 94.85 105.35 115.84 126.33
5 years 4.008% 82.16 86.61 95.51 104.42 113.32 122.22
4 years 4.168% 84.93 88.55 95.78 103.01 110.24 117.47
3 years 4.123% 88.58 91.35 96.89 102.43 107.97 113.50
2 years 4.223% 92.06 93.94 97.70 101.46 105.22 108.98
1 year 4.678% 95.53 96.49 98.40 100.31 102.22 104.13
Maturity Date 100.00 100.00 100.00 100.00 100.00 100.00

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