Autumn Statement 2012: Blow for George Osborne as investors reject 100-year gilts Following rejection from investors, in related documents released after the Chancellor's Autumn Statement, the Debt Management Office (DMO) confirmed the ambitious plan has now been dropped. The admission follows an industry consultation during the summer to which investors including Hermes, the Association of British Insurers and Goldman Sachs all responded. "In the case of perpetual gilts, the Government judges that these would be unlikely to represent a cost effective source of financing at present in the absence of tangible market demand," said the DMO. The consultation "provided little evidence" of demand for such long-dated Government bonds. The Treasury however said it will remove the cap on gilt maturities - currently set at 50 years - and will instead look to issue gilts dated between 50 and 60 years in 2013-14, subject to market demand. Joanne Segars, chief executive of the National Association of Pension Funds, was one of the fiercest critics of Mr Osborne's plan earlier in the year. "Pension funds won't mourn the passing of any plans for 100-year bonds, and we do not think there would have been any real appetite for them," she said following the news. Pension liabilities are long-term, but not that long-term. Issuance in the 50 to 60-year range may be of greater interest. What pension funds really want is an increased supply of long-dated debt that is index-linked.