View more on these topics

£1Bn a day gilt sales needed to cover debt

Gilts are artificially overpriced, with the Government facing “a monumental target” to shift enough to cover the national debt in the next few years, according to LibDem Treasury spokesman Lord Oakeshott.

He said that the head of the Debt Management Office has the “toughest job” in the UK and has to shift around £1bn of gilts every working day next year.

He said: “Sell gilts and keep selling gilts. They are totally artificial, they are totally the wrong price. The yield is much too low and a hell of a lot of them are going to have to be put out.”

Tory MP Richard Spring said £197bn of gilts have to be sold next year, according to Government estimates. He pointed out that two-thirds of gilt sales go to overseas investors and this big increase in supply may mean that they will not see the value in buying them and go to gilt markets elsewhere.

He said: “I just hope that the Government is able to flog the bonds into this market because otherwise we risk problems in sterling and the inability to sell and all the implications that flow from that.”

Recommended

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com