Govt considers launch of 100-year bond

Chancellor George Osborne is considering launching a new super long dated gilt running with a maturity of 100 years, according to reports.

In the Budget next week Osborne is expected to float the idea and start a consultation on whether a 100-year bond, or possibly one without any redemption date, could be launched. Launching the bond now would enable the government to borrow when interest rates are at record lows, helping to manage down the country's debt over the long term. A consultation will likely assess whether there would be any demand for such an issue, and that would be crucial to its success. Currently most long-term debt has a maximum maturity of 30-years, and although a 50-year gilt was launched in 2005 th...