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.
- Up to 200,000 are poised to cash in their pensions next April
- Government rolls out consultation on the Bank of England's powers over the UK's housing market
- Pension scammer warning as 77% say they don't know the difference between pension income reforms and pension liberation
- Retail investment sales plunge 70% in September compared to 2013
- House prices dip in September in further sign that market may be cooling
- The ECB has missed the opportunity to end the European crisis
- E.ON launches cheapest energy deal on the market as 'big six' rise to the challenge of the smaller firms
- Average UK house prices climb to all time high but growth rate eases significantly
- Selling may not be the best policy when a star fund manager quits
- Official numbers suggest strong rise in pension take-up as auto-enrolment gains traction