Budget 2012: UK government considers perpetual gilts

The Debt Management Office is considering the issuance of longer-dated gilts.

The longest dated gilt currently offered by the Treasury is 50 years but chancellor George Osborne says that discussions are underway on the subject of offering longer-dated debt options.

Osborne has previously indicated that a 100-year gilt was a possibility in order to take advantage of low borrowing costs.

There is the possibility of a perpeutual gilt with no fixed redemption date, an option which has not existed for six decades, says Osborne.