Record level of gilt sales announced in the Budget - Financial indicator
April 2008
Record level of gilt sales announced in the Budget - Financial indicator
The Government has announced that sales of government debt will reach £80bn in the 2008/9, a 37 per cent increase on the previous fiscal year. Driven by strained government finances, the high level of new issuance will be a severe test of investor’s willingness to buy. The expectation must be that yields on government bonds rise and charities with a high exposure to fixed interest investments should be alert to the threat to their valuations.
Author: John Kelly
John Kelly is head of client investment at CCLA.
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