Gilt Market Resilience: Welford Capital’s Jordan Jones on Yield Stabilization

By Jordan Jones, Fixed Income Advisor

Despite the broader market volatility, UK Gilts have shown remarkable stability in early 2026. Jordan Jones of Welford Capital reports that 10-year Gilt yields have settled near 4.4%, a significant move from the 4.8% highs seen last autumn. This stabilization comes as the Debt Management Office (DMO) shifts its strategy toward shorter-dated issuance to manage debt interest costs.

“We are seeing a ‘flight to quality’ that is well-supported by the current fiscal environment,” Jordan Jones explains. At Welford Capital, we are advising clients to utilize UK Government Gilts as a primary hedge against equity market fluctuations, especially as the FTSE 100 tests the 10,000-point resistance level. Jordan Jones emphasizes that “the tax advantages of holding Gilts within an ISA or SIPP make them an indispensable component of a 2026 tax-efficient strategy.” Welford Capital continues to monitor the spread between 2-year and 30-year Gilts to identify the best entry points for our clients.