The Budget: The view for investors
- 23 March 2012
The income seeker:
Government bond markets like a balanced budget. The Chancellor didn't have a rush of generosity and as a result 10 year gilts remained unchanged on the day. The Government also announced a consultation on launching perpetual gilts.
"This would enable the government to borrow when interest rates are at record lows, helping to manage down the country's debt over the long term. However, potential buyers of the debt – including pension funds - have warned they would have little use for long-dated issues."
For investors, a very long-dated bond might suit a giant tortoise or an optimistic one-year old, but given that interest rates are likely to rise eventually, it is difficult to see the attraction for conventional investors.
Mindful money Mortgage Tool Box
Looking To Re-mortgage
How Much Could You Borrow
How Much Is Your Home Worth
Find a Mortgage Advisor
- Will the Santa stock market rally happen at all this year?
- UK plc dividend growth set to improve in 2015 despite the absence of any bumper Vodafone-size payouts
- At last the real scandal emerges - the lid is lifted on the disgrace of old style overcharging pension contracts
- Investors warned to reassess their risk appetite in 2015
- Inflation falls to 12-year low of 1% as petrol and food prices drop
- Experts tip the stocks to watch in 2015
- Russia raises interest rates to 17%, but rouble continues to plummet
- Pensioner bond savings rates - what are the best alternatives?
- Mindful Money's weekly shares watch: Imagination Technologies, Dixons Carphone, Serco & Carnival
- Co-op fails Bank of England stress test