UK prepares 50-year linker

New angles

Demand from pension funds and banks has prompted the UK Treasury to prepare the first-ever 50-year inflation-linked bond. "Through our informal talks with our stakeholders, banks and other market participants we were told there is likely to be sustainable demand for ultra-long gilts in both index-linked and conventional formats," says Arnaud Marès, head of portfolio strategy at the UK Debt Management Office (DMO).

Demand for 50-year index-linked and conventional gilts could potentially be £