Best Gilts to Buy Right Now: A Yield Roundup Across Short, Medium and Long Maturities

UK government bonds, or gilts, are paying more than they have in years. With yields spread across dozens of bonds maturing anywhere from months to nearly half a century away, picking the right one matters. This roundup walks through some of the highest-yielding gilts at each end of the maturity scale, using live data from 3 November 2026. Figures move daily, so treat these as a snapshot, not a fixed menu.

Two yields you need to understand

Before choosing, get clear on the two numbers that matter.

• Running yield is the annual income as a percentage of today's price. Handy if you want cash in your pocket each year.
• Yield to maturity (YTM) is your total annual return if you hold the gilt until it repays, counting both income and any price gain or loss along the way.

A gilt bought below its £100 repayment value gives you a capital gain at the end. A gilt bought above £100 hands you a small loss on the price, offset by a fat coupon. YTM blends all of that into one figure, which is why it's the fairest way to compare.

Best short-dated gilts to buy

Short-dated gilts repay within a few years. They barely move in price, so they suit cautious savers and anyone parking money for a known goal.

UK Treasury 4.5% 2028 stands out here. Priced at 99.62, it offers a running yield of 4.52% and a YTM of 4.75%. You get a healthy coupon and the price sits just below par, so there's a touch of capital gain on top.

For something a little further out, UK Treasury 4.125% 2031 trades at 97.24 with a YTM of 4.84%. Nearly five years of a known return, with a modest discount baked in.

If you'd rather take most of your reward as a capital gain, UK Treasury 0.25% 2031 is interesting. The tiny coupon means a low price of 81.17 and a running yield of just 0.31%, but the YTM is 4.73%. More on why that structure can help certain investors below.

Best medium-dated gilts to buy

Medium-dated gilts, roughly five to fifteen years out, lock in today's higher yields for longer. The trade-off is more price movement if interest rates shift.

UK Treasury 4.875% 2036 carries one of the chunkiest coupons in this range. At 97.63 it yields 4.99% running and 5.19% to maturity. Strong income now, plus a small gain if you hold to the end.

UK Treasury 4.75% 2038 pushes the income higher still, with a running yield of 5.01% and a YTM of 5.34% at a price of 94.83. You're committing for roughly twelve years, so be comfortable leaving the money untouched.

UK Treasury 5.25% 2041 rewards patience with a 5.36% running yield and a 5.45% YTM, priced close to par at 98. A solid middle-ground pick for income seekers who don't want to go right out to the longest bonds.

Best long-dated gilts to buy

Long-dated gilts repay in fifteen years or more. They offer the highest yields on the board, but their prices swing hard when rates move. Suited to pension pots and anyone matching a far-off liability.

The top yields to maturity sit here. UK Treasury 1.75% 2049 and UK Treasury 1.5% 2053 both show a YTM of 5.72%, the highest in this roundup. Both trade at deep discounts, around 50.41 and 42.54, because their coupons are small. Most of your return comes as a capital gain at repayment.

For bigger regular income instead, UK Treasury 5.375% 2056 pays a running yield of 5.58% with a YTM of 5.63%, priced near par at 96.31. UK Treasury 4.375% 2054 offers a 5.33% running yield and a 5.66% YTM at 82.10.

The low-coupon tax angle

Here's why those low-coupon gilts keep appearing. Gilts are free from capital gains tax. The income coupon is still taxable if held outside an ISA or pension, but any price gain between what you pay and the £100 you get back is not.

That makes a bond like UK Treasury 0.5% 2029, priced at 91.28 with a YTM of 4.65%, appealing to higher-rate taxpayers holding gilts in a normal account. Most of the return arrives as a tax-free gain rather than taxable income. A big-coupon gilt delivers a very similar YTM but taxes more of it. Inside an ISA or SIPP the distinction fades, since everything is sheltered anyway.

Who should buy what

• Cautious savers and short goals: short-dated gilts like UK Treasury 4.5% 2028. Low price wobble, income you can rely on.
• Income seekers: medium bonds with big coupons, such as UK Treasury 4.875% 2036 or UK Treasury 5.25% 2041.
• Long-term holders and pensions: the longer bonds, where UK Treasury 1.75% 2049 and UK Treasury 1.5% 2053 top the YTM table.
• Higher-rate taxpayers outside a wrapper: low-coupon gilts, for the tax-free capital gain.

The longer you go, the bigger the yield, but also the bigger the price swing if rates change. Match the maturity to when you'll actually need the money.

This article is general information, not personal advice. Gilt prices and yields change constantly, and the figures here reflect a single day. If you sell before maturity you could get back less than you paid. Your own tax position depends on your circumstances. Consider speaking to a regulated financial adviser before investing.

Important disclaimer

This article is for information only and is not financial advice. Gilt prices and yields move daily and your capital is at risk. Always do your own research or speak to a regulated financial adviser before investing.