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.
- Falling UK real wages cannot be covered up with housing market subsidies forever
- The UK economy gets quite a boost from the official statisticians
- Government to abolish 55% death tax on pensions
- Three stock picks from F&C European Small Cap manager Sam Cosh
- Mindful Money's weekly shares watch: Sainsbury’s, Wolseley & Compass
- Just one year to go before Britons can get up to £1,300 a year in State Pension top-ups
- Osborne's move to abolish 55% tax on inherited pensions: Expert reactions and commentary
- UK property market eases back as new borrowing rules start to bite
- UK supermarket shares: "Things are likely to get worse before they get better"
- Millions of UK workers now relying on their employers for retirement planning advice