UK Long-Term Government Bonds Futures Margin & Contract Specifications

What Are UK Long-Term Government Bonds?

UK long-term government bond futures are based on long-dated UK government bonds (gilts) with remaining maturities of approximately 15–25 years. These contracts are quoted in bond prices (which move inversely to yields). Investors are not trading the bonds themselves, but rather their expectations for the direction of long-term UK interest rates.

Factors Affecting the Price of UK Long-Term Government Bonds

1. UK Economic Conditions and Central Bank Policy

UK government bonds are heavily influenced by Bank of England (BoE) policy, as the BoE is one of the largest holders of gilts. When the central bank engages in quantitative tightening (QT) or raises interest rates, it signals the withdrawal of a major buyer from the market—supply increases while demand falls—leading to lower bond prices.
Economic conditions also play a key role, as long-term bonds are highly sensitive to inflation. Inflation erodes the purchasing power of future fixed income. When UK inflation slows faster than expected, investors tend to lower their required future interest rates, which is supportive for bond prices.

2. Government Fiscal Policy and Bond Supply

The UK bond market was severely impacted by the 2022 fiscal turmoil (the Truss budget), making investors extremely sensitive to fiscal discipline. Excessive government spending that leads to a surge in bond issuance can create oversupply, putting downward pressure on bond prices.

3. British Pound Exchange Rate

The pound sterling is closely linked to bond prices. A weaker pound can raise import prices and generate imported inflation, potentially forcing the BoE to raise rates to defend the currency—an unfavorable outcome for bond prices.

4. International Interest Rates

UK long-term bonds are influenced by global interest rates. If U.S. rates remain elevated, U.S. Treasuries become more attractive, drawing capital away from UK gilts and weighing on their prices.
Although the UK has exited the EU, its financial markets remain closely linked to Europe. For example, rising German long-term bond yields can widen yield spreads and trigger declines in UK bond prices.

5. Global Risk Sentiment

When global risk appetite increases, capital tends to flow into equities and credit assets, reducing demand for bonds and pushing prices lower. Conversely, during periods of financial market turmoil or geopolitical conflict, safe-haven flows often move into government bonds, driving prices higher.

Long Gilt Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Long Gilt Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Long GiltFutures.

Long GiltLast Trading Day

Futures