Looking for best 1 year fixed rate bond/ gilt

itsme999

Hi

I have come across: Treasury 0.125% 31/01/2028 TN28 Gilt , Buy at £94.30

1. why is it TN28 and not TG28?
2. In my calculation: TN28 is giving app. 6% return within 18months (Aug 2027- Jan 2028), ie: 4% annually, am I correct?

Thanks

masonic

https://forums.moneysavingexpert.com/discussion/comment/82089025#Comment_82089025

1. Because TG28 is Treasury 1.625% 22/10/2028 Gilt.

2. The running yield is 0.133%, so you would get 0.2% interest (3 coupons for half the running yield), plus a 5.7% capital gain, so 5.9%.

itsme999

https://forums.moneysavingexpert.com/discussion/comment/82089069#Comment_82089069

Not any clearer. TG means treasury guilt I guess. What does the N stand for in TN28?

5.9% over 18months which is roughly 3.933% over 12, still worth it for 40% tax payer when bonds pay 5% , isn't it?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82089138#Comment_82089138

You'd have to ask the debt management office about the tickers. They include T, TE, TG, TN, TS and TR. Some have the year between two letters, such as T__A, T__H, T__K, T__N, etc.

5.9% over 18 months composed of 0.2% interest and 5.7% capital gain is still around 5.6% after 40% tax. A 5% savings bond is all interest, so that would be 3% after 40% tax in the first year and perhaps 4.5% over the same 18 months if you can get another 6 months at the same rate. Only you can say whether it is worth it or not. I'd rather have 5.6% than 4.5%.

However, it is important to note that with a gilt, you have no idea what your gain will be after 12 months. You have to hold it to maturity to get the specified return.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82089138#Comment_82089138

The Treasury never feels any guilt! 😉

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82089138#Comment_82089138

Just wait till you spot TRTQ.

itsme999

The G and N make sense now, cheers.

I'm buying gilts to hold until maturity and get the full £100, no intention at all to sell before maturity.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82089138#Comment_82089138

Don't worry about it, it's just a unique short code to make finding the LSE listing easier - each gilt has multiple codes - and their formal names don't matter either. For some history:

"Formal name: gilts used to be issued with a variety of names, often “Treasury” or “Exchequer” or “Funding”, often followed by “Stock” or “Loan”, but sometimes with a more peculiar name. The only material difference was that Loans could be held in bearer form. Anyway, the name did not affect the credit, nor the perception of credit, and was generally ignored. From 1994 (after the issuance of 7%97), until 2005, new conventional gilts were named “Treasury Stock”. Then on 13 May 2005 the DMO announced that “British Government Stocks first issued on or after 1 April 2005 will be titled as Gilts (i.e. Treasury Gilt). The change of name is presentational only and does not represent any change to the underlying characteristics of the instrument.” The last issued of the Treasury Stocks was 4T20; the first of the Treasury Giltswas 4Q55. But, for emphasis, the name really doesn’t matter, and most gilt investors would not know the name of a gilt that wasn’t recently issued—because there is no purpose to knowing the name."

https://www.jdawiseman.com/papers/finmkts/gilt_statics.html

itsme999

UPDATE;

I just invested in TN28 …

Thanks again for the replies 🙏

itsme999

Hi; I had this email from HL:

"

We’re excited to announce that applications are now open for two UK Treasury Bills. Applications are due to close at 3pm Thursday 13 August 2026, but please note, applications can close early.

Apply for the 3 month UK Treasury Bill maturing 16 November 2026.

Apply for the 6 month UK Treasury Bill maturing 15 February 2027.

"

How does this work? There are no details, is it worth putting say £20k each or only one but which one?

Thanks