In the UK government bonds are called "gilts" or gilt-edged meaning a very secure investment.
The bonds are issued on regular dates and sold to specialist dealers called "gilt-edged market makers".
Bonds not taken up at an auction are bought by the Bank of England and sold whenever the dealers want them as "tap stock"
Often referred to as UK gilts are issued in amounts of 100
In the UK, 3 and 6 month bills are sold every Friday by auction to banks and discount houses.
Gilts are a form of promissory note
There is very little trading of undated glits by the wholesale market.
New undated gilts are no longer issued but there are a few in existence. There is no redemption date. In bond markets, bonds with no redemption date may be called "undated", "perpetual" or "irredemiable"
Dealing in gilt-edged bonds is for cash settlement the following day (T + 1)
Maturities vary from 5 to 25 years
Gilts are divided into 3 main classes - dated, undated and index linked
Consols - A consol is the name given to certain types of perpetual government bonds issued by the UK.
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