gilts

Chancellor George Osborne has confirmed the government will consult on launching perpetual gilts and gilts with a life longer than 50 years, despite a wave of criticism from potential investors.

100-YEAR GILTS

The longest losing streak for 10-year US treasuries since 2006, coupled with a marked rise in other ‘safe haven' bond yields, poses some difficult questions for bond investors.

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

Leading bond fund manager Jim Leaviss has questioned why investors - other than pension funds - should be interested in 100-year gilts, amid reports the Chancellor is gearing up to unveil them next week.

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

The Bank of England's Monetary Policy Committee (MPC) was divided over its quantitative easing programme earlier this month, with two members calling for the asset purchase programme to be increased by £75bn.

Yields on UK gilts jumepd in early trading as investors reacted to the threat of a possible downgrade of the UK's AAA rating.

Billionaire investor Warren Buffett has warned US treasuries, gilts and other bonds are among the 'most dangerous of assets' at current levels.

Investors can continue to buy 10-year debt issued by safe haven governments in 2012, with the risk of losing vast sums diminished, said Kames Capital's David Roberts.