Britain's Debt Management Office is set to issue a 30 year inflation-protected bond as investors clamour for ways to protect against rising inflation.
According to the Financial Times, the new bond will be issued in late November. The DMO will also offer a 20-year index linked gilt on 4 October and a 10-year linker bond on 8 November. The move comes following a rally for the asset class as investors seek ways to protect against future rising inflation. Figures from the Investment Association show fixed income funds were the best-selling asset class in July, with net sales of £1.1bn Since Brexit, the forecast for inflation has soared to a two-year high with inflation likely to move higher than its 2% Bank of England target. ...
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