UK overnight index swap rate: 10 years
UK overnight index swap rate: 10 years stood at 4.66% 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 2016 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Overnight index swap rate | |||||||||||
| 10 years | 4.66 | 4.63 | 4.33 | 4.38 | 4.53 | 4.37 | 3.88 | 4.13 | 4 | 3.95 | |
| 15 years | 4.95 | 4.91 | 4.62 | 4.66 | 4.82 | 4.64 | 4.21 | 4.45 | 4.3 | 4.26 |
Understanding UK overnight index swap rate: 10 years
Reflecting market pricing for wholesale interest rate contracts, this metric captures the annualised expectation of official borrowing costs settled over a decade-long horizon within the United Kingdom. By utilising overnight index swaps, the measure eliminates the sovereign credit risk and structural supply distortions inherent in physical government bonds. Compared to shorter swap tenors, this decade point absorbs shifting views on potential economic growth, productivity trends, and the long-run neutral rate of monetary policy without capturing the extreme liquidity premiums found in ultra-long instruments.
When evaluating these figures, analysts must distinguish between permanent shifts in monetary policy stances and temporary fluctuations driven by transient market positioning or regulatory demand for long-duration hedges. Early estimates are finalised immediately upon trade execution, leaving little room for conventional statistical revisions, though daily market volatility can introduce sudden level shifts. Comparing this benchmark duration with nominal gilt yields of identical maturity highlights the prevailing swap spread, which serves as a vital barometer of banking sector liquidity and collateral scarcity across the financial system.
Frequently asked questions
- How does this decade-long swap rate interact with central bank communication?
- It reacts swiftly to speeches and policy announcements if market participants believe the central bank will alter its long-run neutral interest rate target.
- Why is this maturity watched closely by institutional asset managers?
- Pension funds and insurers frequently reference this duration benchmark when pricing long-term liabilities and hedging interest rate risk in their portfolios.
- Are these swap rates subject to seasonal adjustment?
- No, financial derivative rates are unadjusted market prices reflecting real-time supply and demand for liquidity rather than measured economic activity.