Fifty-year index-linked stock? We'll pass

In May of this year the Debt Management Office (DMO) launched the first 50-year UK gilt arousing muc...

In May of this year the Debt Management Office (DMO) launched the first 50-year UK gilt arousing much debate. A subsequent auction of the same fixed-rate bond, alongside the recent 50-year index-linked bond appears to have gone smoothly. That does not, however, mean they have been good value, but rather that the DMO has successfully funded a chunk of the Government borrowing programme in a highly cost efficient manner. Nowhere is this more evident than the 50-year index-linked stock. The clearing level of this bond, which received £2bn worth of demand for the £1.25bn issued, was reflecte...