Demand is increasing for long end of gilt market

RSA Investments is favouring long gilts over shorter-dated paper as it believes there is more eviden...

RSA Investments is favouring long gilts over shorter-dated paper as it believes there is more evidence of demand from institutions. It said institutional flows out of equities and into bonds are providing some support for the long end of the gilt market. The group is favouring long gilts over the five-year area of the market as it does not anticipate the same level of institutional support for the shorter end. Evidence to support this view was provided earlier this month when around £2.75bn in gilts maturing in 2025 were auctioned ' the largest UK Government debt auction since September ...