Should the UK launch 100-year bonds?

100 YEARS OF DEBT

John Redwood, chairman of Evercore Pan-Asset's investment committee looks at the pros and cons of a UK 100-year government bond.

"The UK's announcement that the government is considering issuing 100-year bonds has grabbed the headlines. The story was designed to highlight the favourable low rates of interest the UK government still enjoys when raising new funds. "It also underwrote the helpful fact that UK government debt is already on average longer term than many EU countries, reducing the pressures on government as it needs less frequent refinancing. Less UK debt needs replacing each year than in comparable countries. "If they do sell a decent amount of 100-year bonds, or offer more 50-year bonds, it continu...