The Insurance Markets BriefWeekly analysis
Gilt yields rise 10bp to 17bp from 17 to 24 September, with the longest maturities rising least
Comparison window. Market moves compare each series' latest published observation in the week to Friday 25 September 2026 with its observation one week earlier. The Bank of England had not published its gilt curve for Friday 25 September when this edition was written on 26 September, so gilt moves run from Thursday 17 to Thursday 24 September. Monthly and half-yearly figures keep their own publication periods.
Rates and the curve
The window runs from Thursday 17 September, the day the Bank of England published its slower gilt-unwind plan, to Thursday 24 September; the Bank had not published its Friday curve when this edition was written.
Over the window, UK gilt spot yields rose by between 10bp and 17bp from two to 40 years, taking the 10-year to 5.36% and the 20-year to 5.90%. The longest maturities rose least, 12bp at 30 years against 17bp at five, and the gap between 10- and 30-year yields narrowed from 57.5bp to 54.0bp. The rise came late: on 21 September the 10-, 20- and 30-year yields were below their 17 September levels.
Insurer portfolio read
Pension Insurance Corporation's half-year results show an annuity book moving towards gilts. At 30 June PIC held £26.3bn of government bonds, 48% of its investment portfolio, up from £24.2bn at the end of 2025. Its corporate bonds fell to £11.4bn from £13.5bn, private debt was little changed at £10.8bn, and new business fell to £0.3bn from £1.1bn.
Across the market, LCP counted £10.2bn of buy-ins in the first half and put typical-scheme pricing 3% better against a gilt benchmark since January.
Policy and regulation
The Bank of England has paused its gilt sale auctions while it reviews selling £146bn of gilts maturing between 2035 and 2049 to the Government at £20bn a year, with the Debt Management Office as buyer. It will announce the operational details by April 2027. The £120bn of longest-dated gilts in its Asset Purchase Facility will be held to maturity.
Next week
The ONS publishes the UK quarterly national accounts for April to June 2026 at 7am on Wednesday 30 September. ONS release calendar
The figures
UK 10-year gilt
Nominal spot yield
5.36%
+15 bp vs 17 Sep 2026
UK 20-year gilt
Nominal spot yield
5.90%
+13 bp vs 17 Sep 2026
Sterling volatility adjustment
PRA monthly figure
16 bp
−1 bp vs 31 Jul 2026, previous month
UK buy-in volume
First half of 2026
£10.2bn
+£0.5bn vs first half of 2025