Ultra-long gilt plan shelved

Michael Bow
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THE government yesterday scaled back its plans to issue super-long 100 year perpetual gilts and instead settled on issuing securities with up to 60 years maturity.

The announcement comes on the back of a consultation by the Debt Management Office on the appetite for ultra-long gilts.

The maturity cap is currently set at 50 years but many respondents to the consultation, mainly pension funds and asset managers who buy gilts, said they would not be interested in buying super long gilts. Yesterday the Treasury said it would raise the maturity limit to 60 years.