In an era marked by economic uncertainty, inflationary pressures, and shifting interest rates, UK government bonds—commonly known as gilts—have resurfaced as a focal point for professional traders and institutional investors. Whether used as a hedge against volatility, a reliable income source, or a tactical trading instrument, gilts offer a compelling entry point into the sovereign debt market. Understanding the UK Government Bond Market Gilts are debt instruments issued by the UK government to fund public spending. Investors who purchase gilts receive fixed interest payments, known as coupons, and are repaid the principal at maturity. Considered low-risk assets, gilts are backed by the UK government’s creditworthiness, making them a core component…