Inflation

John Lewis Partnership has seen an £87m increase in its defined benefit (DB) scheme deficit despite pumping in more than £50m, its interim results show.

The UK Debt Management Office (DMO) will launch a 55-year index linked gilt in the coming weeks but says issuing any bonds of longer duration remains difficult due to lack of demand.

The total deficit of private sector UK defined benefit (DB) schemes increased by £100bn last month as rising inflation expectations pushed up liabilities, figures show.

A drop in the FTSE over August has wiped out summer deficit reduction as levels return to those seen in May, research from Mercer shows.

Yields on ten-year gilts rose this morning after the minutes from the last meeting of the Bank of England's Monetary Policy Committee (MPC) showed the majority of members backed new governor Mark Carney's move to provide forward guidance on interest rates....

Fixed income managers have cautioned the Bank of England (BoE) will be forced to backtrack on its forward guidance measures as it has been too pessimistic over the state of the UK economy.

The Bank of England (BoE) has said it will not raise the base rate of interest before the unemployment rate falls to 7% and warned investors are still expecting rates to rise sooner than is likely.

Gilt yields buck the trend of previous months and fall during July increasing UK corporate deficits by £50bn, research from Xafinity finds.

UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear.

Europe is facing a real danger of deflation according to Legal & General Investment Management (LGIM).