Budget 2012: Govt considers 100-year bond

Author: IFAonline
IFAonline | 14 Mar 2012 | 07:15

Categories: Bonds| Economics / Markets| Mortgages

Topics: interest rate| Gilt| George Osborne| Budget 2012

pa-9064730

The government is considering issuing "super gilts" - bonds with a repayment date lasting 100 years or more - which it hopes will allow it to lock in the current record low base rate.

The Chancellor George Osborne will announce in next week's Budget that he will consult on creating the new bonds, which may even be issued with no set redemption date, according to the BBC.

It is hoped the super long-term gilts would allow the government to lock in the current record low interest rate of 0.5% for a very long time.

If the bond proved popular with investors, future governments would pay less debt interest for years to come.

The last perpetual loan was taken out to cover the cost of World War I.

More bonds news

Related briefings

Recommended reading

Categories

Topics

  • Comments
  • Print
  • RSS
  • Share
blog comments powered by Disqus

Related articles

Most Read

Audio / Visual

Coffee Lounge

Who picked up the gongs this year?

Protected Product Review Awards 2013

Who picked up the gongs this year?

Advisers and providers gathered at the Grand Connaught Rooms in London on 20 November to celebrate the ingenuity and the graft displayed in the protected product arena throughout the last 12 months. These awards are growing in popularity every year, and our congratulations go to the winners and highly commended.

Events

event logo

Retirement Planner Forum & Awards 2014

06 Jun 2014 - 06 Jun 2014

London, UK

event logo

International Fund & Product Awards 2014

16 Jun 2014 - 16 Jun 2014

London, UK

event logo

COVER Breakfast Briefings

26 Jun 2014 - 26 Jun 2014

London, UK

Markets

Sponsored video

Poll

Do you believe the insurance industry can deliver the Chancellor's "retirement advice for all" pledge?