Fixed Income

Long the Western bond markets…for the time being

Concerns over the demand for index-linked gilts following the decision to use CPI for pension increases have been exaggerated, F&C says.

A government auction of £2.25bn of gilts was two-and-a-half times oversubscribed despite uncertainty over the result of the election.

GLOBAL - The number of schemes awarding managers bond mandates increased by over 50% in 2009, Towers Watson said.

The number of schemes awarding managers bond mandates increased by more than 50% in 2009, Towers Watson says.

US/UK - PIMCO is reducing its holdings of UK and US government bonds because of fears over increased borrowing and the withdrawal of quantitative easing programmes.

PIMCO is reducing its holdings of UK and US government bonds because of fears over increased borrowing and the withdrawal of quantitative easing programmes.

UK - Overall investment manager search activity increased in the UK during the first nine months of the year in a sign activity is returning to pre-credit crunch levels, Mercer said.

Planned gilt sales are set to rise by £5.2bn to £225.1bn during the 2009-10 financial year, the Debt Management Office says.

UK - The National Association of Pension Funds has called on the government to skew gilt issuance towards long-dated and index-linked gilts.