Two gilts with the same coupon are not the same gilt
Two gilts paying the same coupon can carry different clean prices and different yields, because the coupon says what they pay and the maturity says how long they pay it for.
Articles tagged yields-and-prices
Guides to gilts and to using GiltIQ, written against the site's own data and pages.
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Where the price on a gilt row comes from
The clean price on a gilt row is a stored close from a named source, and the gross yield beside it is computed from that price rather than quoted independently, which is why the two agree by construction.
Redemption yield is not the coupon rate
A gilt's coupon rate is fixed at issue, while its redemption yield depends on the price paid, the coupons collected and the £100 repaid at maturity, so two gilts with very different coupons can offer the same redemption yield.
Ex-dividend and negative accrued interest
A gilt goes ex-dividend a week before each coupon, and from that day a buyer no longer receives the next payment, which is why the accrued interest on the row turns negative.
Accrued interest and the coupon period, worked through
Accrued interest is a half-year coupon scaled by the days elapsed in the coupon period, and reading the three-decimal figure beside its day count is what makes a gilt's price checkable.
Why a gilt's yield appears in two columns
The list shows a gilt's yield twice, once compounded annually and once on the Debt Management Office's semi-annual convention, and the gap between the two columns is a convention rather than a market move.
Clean and dirty price: the questions readers ask
A gilt carries a clean price, an accrued interest figure and a dirty price, and the short answers to the questions readers ask about the three are collected here.
Yield up, price down: one market move, two readings
A gilt's yield and its clean price are the same figure read two ways, so the list's two Since the previous close views describe one market movement rather than two separate events.