descibe gilts and when to buy
Spread. a) the difference between the price a market maker will buy and sell a gilt (bid/offer spread); and b) the difference in yield between two bonds, (e.g. the 10s/30s spread will refer to the difference between the yield on a 10-year bond and a 30-year bond).onventional gilts: open to all Gilt-edged Market Makers (GEMMs) who alone are allowed to make competitive bids by the Bloomberg bond auction system. Successful competitive bidders in conventional gilt auctions are allotted gilts on a bid-price basis, paying the price they bid.
Gilts are government bonds used to make loans to companies, the government and local authorities, the bonds carry a twice annually fixed rate of interest and the capital is paid back at the end of an agreed, stated period.Gilts refers to gilt edged stocks or bonds that are issued by the UK Government.ilts are government bonds used to make loans to companies, the government and local authorities, the bonds carry a twice annually fixed rate of interest and the capital is paid back at the end of an agreed, stated period. Gilts refers to gilt edged stocks or bonds that are issued by the UK Government.