In 2024, the average yearly yield of UK 10-year government bonds was 4.14 percent. The UK 10-year gilt has shown a significant downward trend from 1990 to 2024. Starting at nearly 12 percent in 1990, yields steadily declined, with slight fluctuations, reaching a low of 0.37 percent in 2020. After 2020, yields began to rise again, reflecting recent increases in interest rates and inflation expectations. This long-term decline indicates decreasing inflation and interest rates in Australia over the past decades, with recent economic conditions prompting a reversal in bond yields.

United Kingdom UK: Government Bond Yield: Long Term data was reported at 1.278 % pa in 2017. This records a decrease from the previous number of 1.305 % pa for 2016. United Kingdom UK: Government Bond Yield: Long Term data is updated yearly, averaging 6.130 % pa from Dec 1950 (Median) to 2017, with 68 observations. The data reached an all-time high of 14.766 % pa in 1974 and a record low of 1.278 % pa in 2017. United Kingdom UK: Government Bond Yield: Long Term data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s United Kingdom – Table UK.IMF.IFS: Treasury Bill and Government Securities Rates: Annual.

Graph and download economic data for Interest Rates: Long-Term Government Bond Yields: 10-Year: Main (Including Benchmark) for United Kingdom (IRLTLT01GBM156N) from Jan 1960 to Apr 2025 about long-term, 10-year, United Kingdom, bonds, yield, government, interest rate, interest, and rate.

The monthly average yield on five, ten, and twenty-year nominal zero coupon British Government securities in the United Kingdom (UK) have all seen a continued decrease from December 2019 to July 2020. January 2021 saw a slight increase, progressing to October 2022 when yields reached a new high. At the end of December 2024, the monthly average yield of 20-year British Government Securities stood at 4.65 percent.

The yield on UK 20 Year Bond Yield rose to 5.24% on June 6, 2025, marking a 0.02 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.11 points and is 0.58 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for UK 20Y.

United Kingdom Government Bond Yield: Zero Coupon: 10 Years data was reported at 4.453 % pa in Apr 2025. This records a decrease from the previous number of 4.661 % pa for Mar 2025. United Kingdom Government Bond Yield: Zero Coupon: 10 Years data is updated monthly, averaging 4.728 % pa from Jan 1982 (Median) to Apr 2025, with 520 observations. The data reached an all-time high of 14.643 % pa in Jan 1982 and a record low of 0.125 % pa in Jul 2020. United Kingdom Government Bond Yield: Zero Coupon: 10 Years data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.M013: Government Bond Yield. The data reflects 10 year Government Bond Zero Coupon Yield.

Prices for UK 6M including live quotes, historical charts and news. UK 6M was last updated by Trading Economics this June 9 of 2025.

The total market size of gilts in the United Kingdom (UK) amounted to approximately 2.6 trillion British pounds as of December 2024. The majority of gilts in the UK are made up of conventional (nominal) gilts which are as defined by the United Kingdom Debt Management Office as "A conventional gilt is a liability of the Government which guarantees to pay the holder of the gilt a fixed cash payment (coupon) every six months until the maturity date, at which point the holder receives the final coupon payment and the return of the principal. The prices of conventional gilts are quoted in terms of £100 nominal. However, they can be traded in units as small as a penny."

Prices for UK 5Y including live quotes, historical charts and news. UK 5Y was last updated by Trading Economics this June 8 of 2025.

As of April 16, 2025, the UK bond market displayed a positive spread of 69.3 basis points between 10-year and 2-year yields, indicating long-term rates slightly above short-term ones. The 5-year versus 2-year spread and the 2-year versus 1-year spread also showed a positive value, at 15.1 and 21.7 basis points, respectively.

Yields on UK gilt bonds woth a maturity shorter than seven years decreased between April 2024 and April 2025. For instance, the 1-year bond yield dropped from 4.73 percent to 3.75 percent. On the other hand, the 30-year yield increased from 4.75 percent to 5.43 percent.

Prices for UK 1M including live quotes, historical charts and news. UK 1M was last updated by Trading Economics this May 30 of 2025.

As of December 30, 2024, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of 27.38 percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United States had one the highest yield on 10-year government bonds at this time with 4.59 percent, while Switzerland had the lowest at 0.27 percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

Prices for UK 3M including live quotes, historical charts and news. UK 3M was last updated by Trading Economics this April 30 of 2025.

The monthly average yield on 10 year nominal zero coupon British Government Securities in the United Kingdom (UK) has seen a continued decrease between December 2019 and July 2020, before recovering. In June 2024, the average yield was 4.12 percent, compared to 0.18 percent in July 2020.

Prices for UK 2Y including live quotes, historical charts and news. UK 2Y was last updated by Trading Economics this June 9 of 2025.

The yield on UK 3 Year Bond Yield rose to 4.04% on June 9, 2025, marking a 0.02 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.05 points, though it remains 0.28 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for UK 3Y.

In January 2020, prior to the onset of the global coronavirus (COVID-19) pandemic, three of the seven largest economies by GDP had negative yields for two-year government bonds (Japan, Germany and France). With the onset of the pandemic, two-year bond yields in these countries actually rose slightly - in contrast to the other major economies, where yields fell over this period. As of December 2024, yields for two-year government bonds exhibited fluctuations across all countries. Notably, Japan showed a slight upward trend, while China experienced a modest decline.Negative yields assume that investors lack confidence in economic growth, meaning many investments (such as stocks) may lose value. Therefore, it is preferable to take a small loss on government debt that carries almost no risk to the investor, than risk a larger loss on other investments. As both the yen and euro are considered very safe assets, Japanese, German and French bonds were already being held by many investors prior to the pandemic as a hedge against economic downturn. Therefore, with the announcement of fiscal responses to the pandemic by many governments around March 2020, the value of these assets rose as confidence increased (slightly) that the worst case may be avoided. At the same time, yields on bonds with a higher return fell, as investors sought out investments with a higher return that were still considered safe.

Gilts are bonds issued by the UK Government (HM Treasury) and listed on the London Stock Exchange. The gross value of government bonds issued has been forecast to total a value of 277.7 billion British pounds in 2024.

As of April 16, 2025, the yield for a ten-year U.S. government bond was 4.34 percent, while the yield for a two-year bond was 3.86 percent. This represents an inverted yield curve, whereby bonds of longer maturities provide a lower yield, reflecting investors' expectations for a decline in long-term interest rates. Hence, making long-term debt holders open to more risk under the uncertainty around the condition of financial markets in the future. That markets are uncertain can be seen by considering both the short-term fluctuations, and the long-term downward trend, of the yields of U.S. government bonds from 2006 to 2021, before the treasury yield curve increased again significantly in the following years. What are government bonds? Government bonds, otherwise called ‘sovereign’ or ‘treasury’ bonds, are financial instruments used by governments to raise money for government spending. Investors give the government a certain amount of money (the ‘face value’), to be repaid at a specified time in the future (the ‘maturity date’). In addition, the government makes regular periodic interest payments (called ‘coupon payments’). Once initially issued, government bonds are tradable on financial markets, meaning their value can fluctuate over time (even though the underlying face value and coupon payments remain the same). Investors are attracted to government bonds as, provided the country in question has a stable economy and political system, they are a very safe investment. Accordingly, in periods of economic turmoil, investors may be willing to accept a negative overall return in order to have a safe haven for their money. For example, once the market value is compared to the total received from remaining interest payments and the face value, investors have been willing to accept a negative return on two-year German government bonds between 2014 and 2021. Conversely, if the underlying economy and political structures are weak, investors demand a higher return to compensate for the higher risk they take on. Consequently, the return on bonds in emerging markets like Brazil are consistently higher than that of the United States (and other developed economies). Inverted yield curves When investors are worried about the financial future, it can lead to what is called an ‘inverted yield curve’. An inverted yield curve is where investors pay more for short term bonds than long term, indicating they do not have confidence in long-term financial conditions. Historically, the yield curve has historically inverted before each of the last five U.S. recessions. The last U.S. yield curve inversion occurred at several brief points in 2019 – a trend which continued until the Federal Reserve cut interest rates several times over that year. However, the ultimate trigger for the next recession was the unpredicted, exogenous shock of the global coronavirus (COVID-19) pandemic, showing how such informal indicators may be grounded just as much in coincidence as causation.