30-year gilt yield slumped to 4.4% from above 5% this morning
Japanese equities plunge 5%
While gilts have provided a safe haven for investors in tough times, funds in the sector will not offer that same protection as global monetary policies shift. Paul Burgin reports.
The 2% floor in gilt rates, set by HM Revenue & Customs in 2011, should be lifted to 3% or 4% to ease financial pressure on pensioners in drawdown, a provider has said.
Chancellor George Osborne has confirmed he will consult on launching perpetual gilts and gilts with a life longer than 50 years, despite a wave of criticism from potential investors.
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.
Richard Davis, co-manager of the BlackRock World Resources Equity Income fund, explains why dividend-paying companies in the commodities sector offer value in a low yield environment.
Investec Structured Products has unveiled its latest collection of plans, which are available until 26 August 2011.