Budget 2010: DMO to issue more longer-dated gilts to help pension funds

The Debt Management Office plans to increase issuance of longer dated conventional and index-linked gilts in the coming financial year in response to strong structural demand.

Financial Services Secretary Paul Myners says gross gilt issuance is projected to be £187.3bn in 2010-11, down from £227.6bn in this financial year. Projected gilt sales in long conventional and index-linked gilts will increase to 45% of total gilt sales, with issuance rising £2.4bn to £83.3bn. "The Government has listened carefully to the feedback from dealers and investors in designing its 2010-11 gilt issuance programme," Myners says. "This increase has been achieved within a lower total projected gilt sales, enabling the Government to respond to strong structural demand, in par...