Fixed-income fund managers have voiced their disappointment that Alistair Darling failed to outline sufficient plans to reduce the UK's deficit in today's Budget, only announcing fewer gilts would be issued next year.

Mike Amey, head of UK fixed income at Pimco, said: "We cannot see much new information from a bond investor's perspective - we still need more clarity on how the UK's deficit is going to be reduced and until that happens, the gilt market will continue to suffer bouts of volatility.