DMO

The government will issue less debt this year but increase the percentage of index-linked gilts it auctions at the expense of short-dated conventional gilts.

The Government will pave the way for the issuance of ‘super-long' gilts by removing the current maturity cap.

The government should issue RPI-linked gilts with floor to hedge against deflation, rather than issue 100-year gilts, Hymans Robertson argues.

Inflation-linked bonds rallied yesterday after the government announced it would cancel £9bn of linkers owned by the Royal Mail Pension Plan following the scheme's nationalisation.

The government has said it will not issue CPI-linked gilts in 2012-13, saying the move would not be cost effective and would involve "a number of risks".

The DMO should issue CPI-linked gilts on shorter durations of ten to 20 years to match schemes' shorter-dated CPI-linked liabilities, two of the industry's biggest bodies say.

The Debt Management Office is considering launching index-linked gilts with a maturity of 50 years in October after the idea of a new batch of ultra-long bonds was proposed to investors.

Interest rate hedging jumped 24% in Q2 this year after falls in short-term interest rates and the rising cost of asset swapped index-linked gilts, F&C research shows.

Interest rate hedging jumped 24% in Q2 this year after falls in short-term interest rates and the rising cost of asset swapped index-linked gilts, F&C research shows.

An emerging dual inflation market for liability matching will further drain liquidity from index-linked gilts and swaps, the National Association of Pension Funds says.