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UK3Y

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1d
1w
1m

Analysis and statistics

  • Open
    3.7203$
  • Previous Close
    3.7203$
  • 52 Week Change
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  • Day Range
    0.00$
  • 52 Week High/Low
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  • Dividend Per Share
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  • Market cap
    --$
  • EPS
    --
  • Beta
    --
  • Volume
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About

UK3Y.GBOND refers to the 3-year UK Gilt bond. Gilts are bonds issued by the UK government to finance its spending. The "3Y" indicates a term of approximately three years to maturity from the bond's original issuance date, though the remaining time to maturity will decrease as time passes. Investors purchase these bonds for their relatively low risk and predictable stream of coupon payments, often fixed throughout the bond's life, and the eventual return of the principal at maturity. The UK3Y.GBOND is therefore considered a short-term UK government debt instrument.

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Factors

Interest Rates: Rising interest rates generally decrease bond prices, as newly issued bonds offer higher yields, making older, lower-yielding bonds less attractive.

Inflation Expectations: Higher inflation expectations erode the real return of bonds, leading investors to demand lower prices to compensate for the loss of purchasing power.

Economic Growth: Strong economic growth often leads to higher interest rates and inflation, which can negatively impact bond prices.

Credit Risk: Changes in the perceived creditworthiness of the UK government can affect bond prices. A downgrade would likely decrease prices, while an upgrade might increase them.

Monetary Policy: Actions by the Bank of England, such as quantitative easing or tightening, can significantly influence bond yields and prices.

Global Events: Geopolitical instability or global economic shocks can lead to flight-to-safety flows into UK government bonds, potentially increasing prices.

Supply and Demand: The balance of supply and demand for UK government bonds directly impacts prices. Increased supply or decreased demand will generally lower prices.

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