Gilts for retail investors

[Alaric]

ii and others are advertising a new Gilt issue.

This is a link
https://www.ii.co.uk/ipos/4e29/documents

It's a five year Gilt maturing in 2029 with a coupon of 4.125% payable half yearly.

The price to retail investors is decscribed as

Non-Competitive Auction Price (i.e. the average accepted price for the gilt).

Presumably the coupon has been set so that the issue price is expected to be around par ie 100.

I think there was a Budget announcement that the Government was looking to finance some of its borrowing from private investors.

[monabri]

I think it would be best to hold in a tax free environment with that coupon. IF I were to be looking for a "step" on a bond ladder for 2029 , I'd be more inclined to TG29 ( or TR29) because of their relatively low coupon .


TG29 0 1/2% Treasury Gilt 2029 0.5% 31-Jan-2029 4 years 281 days £84.12 4.212%
TR29 0 7/8% Treasury Gilt 2029 0.875% 22-Oct-2029 5 years 180 days £84.04 4.155%

Source
https://www.dividenddata.co.uk/uk-gilts ... -yields.py