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.
- We can expect plenty of good news in the UK Autumn Statement
- Is Abenomics unleashing a real wage and cost of living crisis on Japan just like the UK has seen?
- The economy of France has decoupled from that of Germany
- Will the government make peer-to-peer lending Isa-inclusive?
- What are the consequences of inflation and indeed disinflation?
- Buying into the UK Industrial Renaissance
- Property - yield is important but there are other reasons to invest
- UK savings plummet as £23bn withdrawn from accounts
- State pension age to rise dramatically for the under 50s. The young can expect to work till they're 70
- Riding the property rollercoaster