'Unattractive' 100-year gilts rejected

Pension funds are uninterested in the Chancellor's rumoured 100-year gilt issue and have called for other maturities to be issued insted.

George Osborne is expected to announce a consultation in next week's Budget on creating 100-year bonds in an effort to lock in the current record low base rate of 0.5%. Pension funds were tipped to be one of the key backers of such an issue,but in a blow to the plans, the National Association of Pension Funds said the bonds would be of little use to them. "A 100-year bond would be too long for most pension funds, and we do not think that many would buy them," said NAPF chief executive Joanne Segars. "Most final salary pension schemes are now closed to new joiners and are becoming m...