This is all true - and if you look at the UK gilt price/yield over the last six months it demonstrates this aptly - yields started to increase in June as everyo

This is all true - and if you look at the UK gilt price/yield over the last six months it demonstrates this aptly - yields started to increase in June as everyone tried to sell their gilts. As you say, the yield only happens if the government pays the nominal at the expiry - and if yields are high it's because the market lacks confidence, and people are selling for less than nominal.