Page "Gilt-edged securities" Paragraph 14

As with all index-linked bonds, there is a time lag between the collection of prices data, the publication of the inflation index and the indexation of the bond.

From their introduction in 1981, index-linked gilts had an eight-month indexation lag ( between the month of collection of prices data and the month of indexation of the bond ).

This was so that the amount of the next coupon was known at the start of each six-month interest accrual period.

However in 2005 the UK Debt Management Office announced that all new issues of index-linked gilts would use a three-month indexation lag, first used in the Canadian Real Return Bond market, and several gilts have now been issued on that basis.