gilts

Inflation climbed marginally in August as expected, driven up by higher utility bills.

Maria Merricks asks top investment managers which vehicles offer the best opportunities.

The Debt Management Office is considering launching index-linked gilts with a maturity of 50 years in October after the idea of a new batch of ultra-long bonds was proposed to investors.

Pensioners in capped drawdown face significant drops in retirement income because falling gilt yields are affecting the amount that can be drawn from a fund, according to Rowanmoor Pensions.

Deficits of schemes monitored by the Pension Protection Fund (PPF) worsened last month, increasing from £8.3bn in June to £67.3bn at the end of July.

Investors are flocking to safe haven UK government bonds as they seek shelter from turbulent global markets.

Annuity rates could hit their lowest point for two years as the sovereign debt crises hits gilt yields.

Yields on the 10-year gilt have fallen to an all-time low below 2.77% as recessionary fears resurface across the globe.

The Bank of England made £9.8bn last year on its £200bn "money printing" programme of quantitative easing to prop up the battered UK economy.

Overseas investors are driving demand for gilts, but gauging the market's next movements is complex.