A bond issued by the UK government to borrow money, seen as one of the lowest-risk UK investments since it’s backed by the government. Like other bonds, gilts pay a fixed rate of interest (the “coupon”) and return the original amount at maturity, though their market price can still rise or fall before then as interest rates and gilt yields move. Index-linked gilts also exist, where the principal is adjusted in line with inflation (RPI): the coupon rate stays fixed, but because it’s applied to the inflated principal, the actual coupon payments and the amount repaid at maturity both rise with inflation too.