Gilts: Testing market appetite for UK Government debt

The Gilt market is bigger than it has ever been – and more volatile than it has been in decades, which throws up interesting and exciting opportunities.


The size of the Gilt market, as measured by the amount of nominal outstanding Gilts, has been expanding constantly for the last 15 years. After expanding rapidly following the financial crisis, the pace of increase had slowed to a trickle until Covid struck in 2020. However, since then it has expanded at pace to fund the economic support measures that were put in place during lockdown.

Gilt issuance will most likely be substantial over the next 2 to 3 years as measures like the energy price guarantee have to be financed as tax receipts slow/fall as the economy enters recession. The chart below shows the amount of outstanding nominal Gilts.

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