UK nominal gilt yield: 1 year
UK nominal gilt yield: 1 year stood at 4.18% in Aug 2026, according to Bank of England — statistical and research datasets. It is one of the indicators in the Yield curves table (Value · Monthly), with a complete series running from Jan 1970 to Aug 2026. The complete series with an interactive chart, free to download.
This indicator in the Yield curves table
| Indicator | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nominal gilt yield | |||||||||||
| 1 year | 4.18 | 4.17 | 4.02 | 4.03 | 4.26 | 4.25 | 3.42 | 3.55 | 3.55 | 3.64 | |
| 2 years | 4.32 | 4.3 | 4.05 | 4.09 | 4.32 | 4.28 | 3.42 | 3.63 | 3.63 | 3.62 |
Understanding UK nominal gilt yield: 1 year
Representing the twelve-month point on the fitted sovereign debt curve, this series measures the annualised nominal return expected on conventional United Kingdom government securities. It smooths pricing data across a vast pool of circulating instruments to construct a theoretical spot rate, excluding coupon-stripping distortions and special-demand effects. Sibling metrics capturing shorter horizons react more aggressively to instantaneous liquidity shifts, whereas this one-year measure incorporates a broader view of the forthcoming policy cycle.
Analyst evaluations should focus on month-on-month shifts to isolate changes in monetary tightening or loosening trajectories. Because the curve is mathematically fitted, sudden market volatility can occasionally distort the interpolation, meaning users must verify movements against primary issuance auctions. Comparing this rate with overnight swaps highlights any term premium embedded in standard sovereign debt over a twelve-month horizon.
Frequently asked questions
- How does this one-year rate differ from an overnight swap rate?
- The gilt yield incorporates government-specific collateral dynamics and potential supply effects, whereas swaps reflect pure interbank interest rate expectations.
- Is this series subject to seasonal distortions?
- No seasonal adjustment is applied, as sovereign bond yields reflect continuous market pricing driven by macroeconomic data releases.
- Can individual bond auctions alter this fitted rate?
- New issuance can temporarily influence nearby market prices, which the curve-fitting methodology attempts to smooth out across the entire maturity spectrum.