Risk awareness relative to the reference index has become paramount among fixed income players and arguably a source of alpha in and of itself.

FORBES: With Bond Yields So Low, Why Should You Pay More For Active Management?

Opponents of the reform, known as "chained CPI" in reference to the Consumer Price Index it involves, argue it hurts senior citizens and others who most need their benefits.

CNN: Hope for compromise recedes as budget debate begins

"For gilt investors, future cash flows on existing index-linked gilts will continue to be calculated by reference to RPI, " said the Economic Secretary, Sajid Javid.

BBC: Inflation: No change to RPI calculation