UK 5-year nominal zero-coupon gilt yield
UK 5-year nominal zero-coupon gilt yield stood at 4.92% on Oct 15, 2026, according to Bank of England. It is one of the indicators in the Gilt yields table (Value · Daily), with a complete series running from Jan 4, 1982 to Oct 15, 2026. The complete series with an interactive chart, free to download.
This indicator in the Gilt yields table
| Indicator | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | 02-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nominal zero-coupon yields | |||||||||||
| 5-year nominal zero-coupon yield | 4.92 | 4.98 | 4.99 | 4.98 | 4.98 | 5 | 4.95 | 4.9 | 4.94 | 4.88 | |
| 10-year nominal zero-coupon yield | 5.34 | 5.42 | 5.43 | 5.43 | 5.45 | 5.48 | 5.44 | 5.37 | 5.42 | 5.35 |
Understanding UK 5-year nominal zero-coupon gilt yield
Spot interest rates applicable to a single financial liability maturing in exactly five years within the United Kingdom are defined by this zero-coupon yield series. By stripping out intermediate coupon payments, this measure isolates the pure time value of money and theoretical discount factors over a medium-term window across the nation. Unlike par yields, zero-coupon figures avoid the distortion of varying coupon sizes across different bond issues, presenting a cleaner mathematical representation of borrowing costs.
Interacting with this data requires understanding that zero-coupon yields are derived through curve-fitting models applied to raw market prices rather than observed directly from a single traded instrument. Analysts reviewing these figures should examine daily changes alongside corresponding par measures to assess term premium dynamics. Comparing this series with shorter or longer zero-coupon rates reveals precise shifts in the curvature of the sovereign debt structure.
Frequently asked questions
- What makes a zero-coupon yield different from a conventional yield?
- It prices a single cash flow at maturity, eliminating the complicating effect of periodic coupon payments.
- How is a zero-coupon yield calculated if most gilts pay coupons?
- Financial models mathematically strip the coupon cash flows from multiple bonds to construct a theoretical spot curve.
- Why use the five-year zero-coupon rate instead of the par yield?
- It provides a direct discount factor for cash flows occurring at that specific point without coupon reinvestment assumptions.