The day after a gilt matures....

aroominyork

Like many other retail investors I have started buying short-dated nominal gilts, in my case TN25 maturing on 31 Jan 2025. My question is what is the effect on the market the day after maturity when there is a load of money looking for a new home? Does the price of gilts maturing in the following few years temporarily rise?

tetrarch

Absolutely minuscule. The amount of Sterling sloshing around, looking for a new home everyday is colossal.

Take a look at this graphic from https://www.lch.com/services/swapclear/volumes



The daily muturing volume of an individual Gilt is trivial in comparison.

Regards

Tet