UK launches world's longest-dated inflation-linked bond

The UK's Debt Management Office (DMO) has launched what it believes to be the longest dated inflation-linked government bond in the world after unveiling a tranche of 50-year gilts.

It has issued £4.5bn worth of gilts dated 2062, with a yield of 0.49%. The issue, which is expected to raise around £4.3bn, was oversubscribed, with total bids of £9.8bn. Most of the buyers were UK based, snapping up 99% of the issue. The 50-year gilt was first mooted earlier this year, picking up widespread support from institutional investors. Back in August the DMO announced it was considering the launch of a 50-year gilt, amid soaring demand for government securities. At the time yields on the benchmark 10-year gilt were at record lows, having fallen to 2.24%. They have sinc...