Question 1

What are index linked gilts?

Accepted Answer

Index-linked gilts (also called inflation-linked gilts, or linkers) are UK government bonds whose principal and coupon payments rise with the Retail Prices Index. A conventional gilt pays a fixed cash amount; a linker pays a fixed real amount, uplifted by realised RPI inflation. That makes the quoted yield on a linker a real yield: the return on top of inflation.

Question 2

How do index linked gilts work?

Accepted Answer

Each cash flow on an index-linked gilt is multiplied by the growth in RPI since the gilt was issued, applied with a three-month lag (the index level used for a payment is RPI from three months earlier). Coupons and the final redemption payment both scale up with the index, so the bond's purchasing power is preserved whatever inflation turns out to be.

Question 3

What is the real yield on an index linked gilt?

Accepted Answer

The real yield is the annualised return an index-linked gilt delivers over and above RPI inflation if held to maturity. A real yield of 1% means you earn inflation plus 1% a year. Real yields can be negative, and investors then pay for inflation protection, as UK linkers did for most of the 2010s before the 2022 repricing.

Question 4

Why have index linked gilts fallen?

Accepted Answer

Because real yields rose. Linker prices move inversely with real yields, and UK real yields repriced from deeply negative to positive from 2022 as rates rose. Long-dated linkers, with durations of 20 years or more, fell hardest. The inflation protection itself worked as designed; it was the real-yield component that repriced. The flip side is that buyers today lock in a positive real yield, visible in the table above.

Question 5

Are index linked gilts linked to RPI or CPI?

Accepted Answer

All index-linked gilts reference RPI today. From February 2030 the RPI methodology will be aligned with CPIH, the consumer prices index including owner occupiers' housing costs, which has historically printed lower than RPI. Linkers maturing after 2030 therefore price that switch, and it shows up in break-even rates across the curve.

Question 6

What is the break-even rate on an index linked gilt?

Accepted Answer

The break-even rate is the gap between a conventional gilt's nominal yield and the real yield on an index-linked gilt of similar maturity. It's the average annual RPI inflation at which the two bonds return the same: if inflation averages above the break-even, the linker wins. Break-evens are the bond market's implied inflation rate, the counterpart to zero-coupon inflation swap rates.

Question 7

Do index linked gilts protect against deflation?

Accepted Answer

No. UK index-linked gilts have no deflation floor. If the reference index falls, coupons and the redemption payment scale down with it. In practice sustained UK deflation has been rare, but the asymmetry matters when comparing linkers with inflation swaps, which can be structured with floors.

Question 8

Where can I see index linked gilt yields?

Accepted Answer

BlueGamma publishes current and historical end-of-day real yields, nearest nominal gilt yields and break-even rates for every UK index linked gilt from 1 to 50 years, alongside the UK RPI swap curve and gilt yield curves. Pull them in the web app, through the Excel Add-in, or over the API. The trial is free for 14 days with no card required.

Question 9

What does UKTI stand for?

Accepted Answer

UKTI is the market ticker for United Kingdom Treasury index linked gilts, the code you'll see on terminals and in bond documentation for UK government inflation-linked bonds. Each linker is identified as UKTI plus its coupon and maturity. It is the sovereign inflation-linked counterpart to UKT, the ticker for conventional (nominal) gilts.

Question 10

Where can I find index linked gilt prices?

Accepted Answer

Index linked gilt prices and yields are two views of the same bond. Prices are quoted in real (index-adjusted) terms, and the traded amount also depends on the index ratio and accrued inflation uplift, which is why professionals compare linkers on real yield rather than price. Official closing prices are published by Tradeweb via the UK Debt Management Office; BlueGamma publishes the end-of-day real yields, nearest nominal yields and break-even rates derived from them, from 1 to 50 years.

Index-linked gilt	Real yield09 Jul 2026	Nearest nominal gilt09 Jul 2026	Break-even rate09 Jul 2026
1Y linker · Nov 2027
2Y linker · Aug 2028
3Y linker · Mar 2029
4Y linker · Jul 2030
5Y linker · Aug 2031
7Y linker · Nov 2033
10Y linker · Nov 2036
15Y linker · Aug 2041
20Y linker · Mar 2046
25Y linker · Mar 2051
30Y linker · Nov 2056
36Y linker · Mar 2062
47Y linker · Mar 2073

Index Linked Gilts: Current & Historic UKTI Yields

The index linked gilt yield curve

Index linked gilts, explained

Reading the table

The 2030 RPI reform

Linkers vs inflation swaps

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FAQs

What are index linked gilts?

How do index linked gilts work?

What is the real yield on an index linked gilt?

Why have index linked gilts fallen?

Are index linked gilts linked to RPI or CPI?

What is the break-even rate on an index linked gilt?

Do index linked gilts protect against deflation?

Where can I see index linked gilt yields?

What does UKTI stand for?

Where can I find index linked gilt prices?

More UK Rates Data

UK Gilt Yield Curve

UK Breakeven Inflation Rates

UK Inflation Swap Rates

Bank of England Rate Forecast

SONIA Swap Rates

Government Bond Yield API