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U.K. Gilt Sale Succeeds
Spiv_2
Posts: 280 Forumite
U.K. Gilt Sale Succeeds a Week After Auction Failure
The U.K. sold all 3.5 billion pounds ($5 billion) of six-year notes in its first offering of non- inflation linked bonds since failing to find enough buyers at an auction last week. The government received 2.23 times as many bids as securities offered
http://www.bloomberg.com/apps/news?pid=20601110&sid=a.xrEYNN8i4U
The U.K. sold all 3.5 billion pounds ($5 billion) of six-year notes in its first offering of non- inflation linked bonds since failing to find enough buyers at an auction last week. The government received 2.23 times as many bids as securities offered
http://www.bloomberg.com/apps/news?pid=20601110&sid=a.xrEYNN8i4U
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Comments
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<right-whinger> More proof that Britain is bankrupt and the markets hate Brown! </right-whinger>0
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They also had some luck on the bonds the day after.U.K. Gilt Sale Succeeds a Week After Auction Failure
The U.K. sold all 3.5 billion pounds ($5 billion) of six-year notes in its first offering of non- inflation linked bonds since failing to find enough buyers at an auction last week. The government received 2.23 times as many bids as securities offered
http://www.bloomberg.com/apps/news?pid=20601110&sid=a.xrEYNN8i4U
http://news.bbc.co.uk/1/hi/business/7965773.stm
I presume they will not be doing any 40 year ones again in a hurry:)0 -
I presume they will not be doing any 40 year ones again in a hurry
There are a few on the calendar :eek:
There was a 2.25 cover on today's auction, but of course it is 6 year paper with an attractive coupon of 4 3/4 % (if they couldn't sell this lot, then we might as well ask for an I.V.A. now !!!)
Shows there is a good demand for 'sensibly' priced Government Debt.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
If the governments paper is selling at 2.3%+, I wonder how long the bank of england can keep the bank rate at 0.5%. Doesn't that mean the government is actually paying so it can lend money to the banks?“The ideas of debtor and creditor as to what constitutes a good time never coincide.”
― P.G. Wodehouse, Love Among the Chickens0 -
Doesn't that mean the government is actually paying so it can lend money to the banks?
Not exactly, but don't expect the Bank of England to be reporting any profits in the next few years !!!!!'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Aaaaargh! So people are only buying gilts in the range they know the government is buying too in the hope that will make them go up in price.Can't they see such gilts are a brief bubble which will burst as soon QE stops and inflation hits?There is appetite for issues that fall within the Bank of England’s quantitative easing zone
I just hope the suckers are all foreign buyers and not our pension managers, but I fear the worst.0 -
I thought they had a successful issue last week, the next day after the failed one
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
The successful auction last week was for index-linked gilts, today's was for normal gilts but with only 6 years 'till maturity. Tomorrow will be more of a test with 30 year gilts being auctioned. As for "success" the FT has a more critical take:
As if the Bank of England wasn’t having a bad enough day…"The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
U.K. Gilt Sale Succeeds a Week After Auction Failure
The U.K. sold all 3.5 billion pounds ($5 billion) of six-year notes in its first offering of non- inflation linked bonds since failing to find enough buyers at an auction last week. The government received 2.23 times as many bids as securities offered
http://www.bloomberg.com/apps/news?pid=20601110&sid=a.xrEYNN8i4U
dead cat bounce anyone??
as you can imagine this won't be a popular thread - go and find some bad news for that...
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U.K. Gilt Sale Succeeds
It says something when this is posted as a 'success' story, Things are getting worse by the minute.
Tomorrow's bull thread will be someone has bought a house.0
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