TREASURY 5.375% 31/01/2056 (T56)

FIREDreamer

Anyone tempted to lock in this seemingly high yield?

I will be over 90 when it matures. 🤣🤣🤣

masonic

You can get a YTM of 5% locking in for as little as 14 years. Who knows where inflation is headed in the long term. I did buy up some fairly long duration gilts back in mid-January when yields were high, but ended up selling for close to a years worth of interest as a capital gain. They've dipped to the same sort of level a couple of times since, and look like they might be heading there again, but I don't think I'll bite, as I'm no longer optimistic about them not falling further.

Johnjdc

masonic said:

You can get a YTM of 5% locking in for as little as 14 years. Who knows where inflation is headed in the long term. I did buy up some fairly long duration gilts back in mid-January when yields were high, but ended up selling for close to a years worth of interest as a capital gain. They've dipped to the same sort of level a couple of times since, and look like they might be heading there again, but I don't think I'll bite, as I'm no longer optimistic about them not falling further.

For that reason, and the tax advantages, at that maturity I'd be more interested in TR56, currently returning effectively RPI+2.3%...

FIREDreamer

Johnjdc said:

masonic said:

You can get a YTM of 5% locking in for as little as 14 years. Who knows where inflation is headed in the long term. I did buy up some fairly long duration gilts back in mid-January when yields were high, but ended up selling for close to a years worth of interest as a capital gain. They've dipped to the same sort of level a couple of times since, and look like they might be heading there again, but I don't think I'll bite, as I'm no longer optimistic about them not falling further.

For that reason, and the tax advantages, at that maturity I'd be more interested in TR56, currently returning effectively RPI+2.3%...

TR56 doesn’t seem to exist?

InvesterJones

FIREDreamer said:

Johnjdc said:

masonic said:

You can get a YTM of 5% locking in for as little as 14 years. Who knows where inflation is headed in the long term. I did buy up some fairly long duration gilts back in mid-January when yields were high, but ended up selling for close to a years worth of interest as a capital gain. They've dipped to the same sort of level a couple of times since, and look like they might be heading there again, but I don't think I'll bite, as I'm no longer optimistic about them not falling further.

For that reason, and the tax advantages, at that maturity I'd be more interested in TR56, currently returning effectively RPI+2.3%...

TR56 doesn’t seem to exist?

Sure it does: https://www.londonstockexchange.com/stock/TR56/united-kingdom/company-page

FIREDreamer

InvesterJones said:

FIREDreamer said:

Johnjdc said:

masonic said:

You can get a YTM of 5% locking in for as little as 14 years. Who knows where inflation is headed in the long term. I did buy up some fairly long duration gilts back in mid-January when yields were high, but ended up selling for close to a years worth of interest as a capital gain. They've dipped to the same sort of level a couple of times since, and look like they might be heading there again, but I don't think I'll bite, as I'm no longer optimistic about them not falling further.

For that reason, and the tax advantages, at that maturity I'd be more interested in TR56, currently returning effectively RPI+2.3%...

TR56 doesn’t seem to exist?

Sure it does: https://www.londonstockexchange.com/stock/TR56/united-kingdom/company-page

Strange.

I search T56 and get this …

I search TR56 and get nothing …

aroominyork

Although some platforms trade index-linked gilts, they do not always show them when you run a search on the ticker. HL and Interactive Investor both fall into that camp. So to clarify:

The conventional gilt is T56, 5.375%, maturing 31 January 2056.

The linker is TR56, 0.125%, maturing on 22 November 2056.

wmb194

FIREDreamer said:

InvesterJones said:

FIREDreamer said:

Johnjdc said:

masonic said:

You can get a YTM of 5% locking in for as little as 14 years. Who knows where inflation is headed in the long term. I did buy up some fairly long duration gilts back in mid-January when yields were high, but ended up selling for close to a years worth of interest as a capital gain. They've dipped to the same sort of level a couple of times since, and look like they might be heading there again, but I don't think I'll bite, as I'm no longer optimistic about them not falling further.

For that reason, and the tax advantages, at that maturity I'd be more interested in TR56, currently returning effectively RPI+2.3%...

TR56 doesn’t seem to exist?

Sure it does: https://www.londonstockexchange.com/stock/TR56/united-kingdom/company-page

Strange.

I search T56 and get this …

I search TR56 and get nothing …

They're listed on the LSE so it's better to use the LSE's site. Whether any particular broker offers any particular gilt is another thing.

https://www.londonstockexchange.com/stock/TR56/united-kingdom/company-page

InvesterJones

Maybe case-sensitive? (Though I see it's in your 'recently viewed shares' list, so it's there somewhere)

TR56 is available at HL and iWeb:

https://www.hl.co.uk/shares/shares-search-results/t/treasury-0.125-22112056-index-linked-gil

https://www.markets.iweb-sharedealing.co.uk/bonds-and-gilts-centre/details/?csid=54309421

FIREDreamer

InvesterJones said:

Maybe case-sensitive? (Though I see it's in your 'recently viewed shares' list, so it's there somewhere)

TR56 is available at HL and iWeb:

https://www.hl.co.uk/shares/shares-search-results/t/treasury-0.125-22112056-index-linked-gil

https://www.markets.iweb-sharedealing.co.uk/bonds-and-gilts-centre/details/?csid=54309421

No it isn’t case sensitive - so it is rather strange! Thanks.