UK 5-year real gilt yield
UK 5-year real gilt yield stood at 3.68% 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 2, 1985 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Real yields | |||||||||||
| 5-year real yield | 3.68 | 3.7 | 3.7 | 3.7 | 3.7 | 3.72 | 3.67 | 3.64 | 3.67 | 3.69 | |
| 10-year real yield | 3.38 | 3.4 | 3.4 | 3.41 | 3.41 | 3.42 | 3.39 | 3.37 | 3.4 | 3.41 |
Understanding UK 5-year real gilt yield
Real returns on medium-term sovereign borrowing linked to price inflation across the United Kingdom are recorded by this five-year index-linked yield measure. Derived from inflation-indexed gilts, the series strips away expected retail price changes to reveal the true purchasing power yield demanded by the market over a five-year horizon. Unlike nominal equivalents, this indicator insulates lenders against inflation shocks, providing a direct reading of real borrowing costs in the domestic economy.
Interpreting these figures requires understanding that they depend on indexation mechanisms tied to published consumer price indices, creating potential lag effects during periods of volatile inflation. Analysts must exercise caution when comparing real yields with nominal yields, as the arithmetic difference represents market-implied inflation rather than a direct forecast. Daily movements reflect shifts in real economic growth prospects and supply-demand imbalances in the indexed debt sector.
Frequently asked questions
- What makes a real yield different from a nominal yield?
- A real yield adjusts for inflation, showing the actual return in purchasing power rather than raw monetary figures.
- Which inflation index is used to derive these real yields?
- UK index-linked gilts are traditionally linked to retail price inflation measures as defined by the debt management framework.
- Can real yields be negative?
- Yes, when investor demand for inflation-protected assets is exceptionally high, real yields can drop below zero.