Bond prices and yields see-sawed in the UK gilt market on Wednesday after an expected confirmation that the UK government would issue a new 50-year gilt after more than four decades.

The UK Debt Management Office, which borrows on behalf of the government, said in a statement that it planned to issue longer-dated bonds of up to 50-year maturity, following an announcement by Gordon Brown, the UK chancellor of the exchequer, during his Budget presentation.