Govt gives green light to super-long gilts

The government will pave the way for the issuance of ‘super-long' gilts by removing the current maturity cap.

In today's Autumn Statement, the government said the measure followed its consultation on super-long and perpetual gilts. It said this established that gilts with maturities above the current cap of 50 years could "represent cost-effective financing for the Exchequer". It anticipated the Debt Management Office will now look to launch new issues with maturities of between 50 and 60 years, subject to market conditions. Long-dated gilts have attracted huge interest in recent years. A sale in May this year saw £4bn of 50-year debt snapped up in record time with the Debt Management O...