gilts

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.

Henderson chief economist Simon Ward has said the sharp fall in gilt yields does not indicate the UK is headed for a Japan-style deflationary environment.

The gilt market is becoming like the tech sector in 2000 as investors pile into UK government debt, warned Schroders' Adam Cordery.

Investors are flocking to safe haven UK government bonds as they seek shelter from turbulent global markets.

Yields on the 10-year gilt have fallen to an all-time low below 2.77% as recessionary fears resurface across the globe.

Henderson's John Pattullo and Jenna Barnard have closed out short duration positions in gilts and treasuries after revising their interest rate expectations.

Artemis' James Foster has taken off a 12% short position in UK gilts and US treasuries in the past few weeks, in the view the MPC will not hike rates until August.

Sterling has strengthened against the dollar as a report revealed UK consumer confidence increased in March from record lows, boosting the Bank of England's case for an interest rate hike.

The UK government bond market has shown resilience in reaction to the Budget and inflation soaring to 4.4% in February, offering a safe haven for investors, says M&G's Mike Riddell.

The price of UK 10-year government bonds stayed higher after the country's growth forecast for the year was slashed from 2.1% to 1.7% in George Osborne's Budget.