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.
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- Average rate offered by easy access ISAs collapses to its lowest on record
- Lloyds shares to be offered to the public at a discount
- Confidence in house price growth remains robust despite the threat of higher interest rates
- Generous grandparents putting their own finances at risk by giving away too much cash
- Leading trade body calls for single rate of tax relief on pensions at 25% or 33% as current system "benefits the rich"
- Pensions tax relief consultation: “Constant change can be detrimental”
- House prices rise by 8.6% in September as supply remains weak
- Dividend hero investment company managers share their secrets
- Virgin to offer half price refund for West Coast trains more than half an hour late