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Breakingviews: A UK 100-year bond bad news for pension funds

Wednesday, March 14, 2012 - 04:01

Mar. 14 - A rational buyer wouldn’t touch a UK 100 year bond, but buyers like pension funds may have no choice, making the bonds a symbolic victory for the government over savers say Reuters Breakingviews

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Agenda setting aside out of -- job Royce is breaking news today's top stories the future looks bleak to say was that if the UK goes ahead with 100 year bond issue. And that even partial success and hedge fund TCI's threat to suit coal India's directors. For allowing the government meddling. Could pay off says bring these -- -- these Peters how Lawson at the stall with a hundred yet on what what do rational invest. My hundred year bond. Not if they work on constrained for making irrational position. Not because we don't know what these things are going to yield but let's say for the sake of argument that you 4% and it can you really on hundred do you view of Britain's the British history would let crises and inflation and wars that have happened upon some ideas. You race saying I -- senses could return but I kind of reconnect. But putts. The thing is they're they're people I've -- who who are constraint yet. The banking and is in the process of buying -- percent of the outstanding gilts. That the that the government the issue is about trillion outstanding. Kevin thanks things on the which 325. So. You know but their pension funds you know. -- it's required to -- kilts and the longer they took about eight say it's a symbolic it's just voters when they need to make -- -- and we suspect yes -- it's not going to make a meaningful difference to the duration of Britain's debt. But it's kind of it's not one -- symbolic move -- I'm just to show you can't. -- I think if if you -- I mean stated UK's doing two things to one of its trying to search significant step out of control. Through austerity events of the missions. But the same time it's also tries to -- distinguish itself from. Other European countries pressing look we actually have a much longer duration on politics -- -- for the -- the immediate repayment risk is -- back right. An action of the situation room from -- that is already quite long so but this is kind of makes it a bit on the. And you will finish -- that just with the the title of the police say hello to 100 -- -- financial repression. That is what you you've put on the top of this he's disappointed that -- That was the point is no rational on -- that's -- by the phones but there -- enough pension funds and banks who basically testified and an effort. Probably will be able okay let's let's get this TCI piece from you risk high reward. You you you say in terms the activism. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Andy's and basically charging its executives -- -- -- -- state black -- and all running my business and much away. But Conan did not send everybody in the government and accusation is that they basically on the prospect -- For the benefits of humanity industrial uses of cult like -- manufacturer's support. I've been at what point the question really is kind of whether they have any child's success but it's kind of it's a -- risk Connell potentially harder ward moved. They can get. -- needed to do even a small making this more shifts at its pricing. You know try to be more kind of rational spend. The body -- -- -- improvement. In an appropriate it's it's not a huge margins and he's positioned much in the cost of a launching this kind of action. Is not enormous. But actually the -- we're making is that there's a benefit potential benefit for fifty COL they've made it may not get anywhere but if it succeeds at me there is potential benefits. But I -- some potential benefit for India in general which is if you had a more. Rational. More economic pricing of out of coal. And less. This group of of these kind of companies doing the State's -- you would actually -- more efficient. Okay Pitt and thinks about -- cost more agenda setting in science. What's our US sprint TV show that comes out of date 12:30 eastern 1630 GMT. -- -- is crisis.

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Breakingviews: A UK 100-year bond bad news for pension funds

Wednesday, March 14, 2012 - 04:01