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Gilt auction failure.

12357

Comments

  • purch
    purch Posts: 9,865 Forumite
    That's what H-L are saying anyway

    You must be glad that you didn't take any of their 'advice' 12 months ago !!!!
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Rochdale_Pioneers
    Rochdale_Pioneers Posts: 2,469 Forumite
    Part of the Furniture Combo Breaker
    purch wrote: »
    No

    The first conventional 50 year Gilt was issued on 4th April 2006 at 4 1/4 %

    There were a couple of Index Linked Gilts of that duration issued in 2005

    Since then there have been quite a few 40 and 50 year duration issues.

    Thanks for that. I half heard some commentator saying that these were unusually long duration, but didn't hear exactly what he said.
  • Sir_Humphrey
    Sir_Humphrey Posts: 1,978 Forumite
    http://www.guardian.co.uk/business/2009/mar/26/gilt-sale-succeeds
    Relief as new government debt sale succeeds

    Gilt auction three times oversubscribed
    Politics is not the art of the possible. It consists of choosing between the disastrous and the unpalatable. J. K. Galbraith
  • Rochdale_Pioneers
    Rochdale_Pioneers Posts: 2,469 Forumite
    Part of the Furniture Combo Breaker
    Today's £1.1bn Gilt auction was nearly 3 times oversubscribed.

    So much for the theory that the markets have no faith in the UK.
  • purch
    purch Posts: 9,865 Forumite
    So much for the theory that the markets have no faith in the UK

    Thats true.

    It had all to do with markets appetite for the Duration, not the markets appetite for UK Debt offerings.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Andrew64
    Andrew64 Posts: 425 Forumite
    Who in their right mind wants gilts that mature in 40 years?

    Today's ones mature in 2022. At least there is still a market for short and medium term debt.
  • kennyboy66_2
    kennyboy66_2 Posts: 2,598 Forumite
    Rochdale_Pioneers wrote: »
    Today's £1.1bn Gilt auction was nearly 3 times oversubscribed.

    So much for the theory that the markets have no faith in the UK.

    Todays were Inflation linked Gilts which should inherently be easier sell.

    I think yesterday's failed sale told us more that people don't think inflation will be less than 4.25% over the next 40 years.

    Labour really should be limiting spending & increasing taxes by a modest amount in the next budget, while signalling that there are more severe spending cuts and tax rises to come - they won't because to do so almost guarantees they lose the next election. They probably think that might as well leave the Tories a right mess to sort out.
    US housing: it's not a bubble

     Moneyweek, December 2005
  • Wookster
    Wookster Posts: 3,795 Forumite
    kennyboy66 wrote: »
    They probably think that might as well leave the Tories a right mess to sort out.

    Maybe that's what that dam stupid grin on Crash's face is: the realisation that he's leaving the Tories a god awful mess!
  • kennyboy66_2
    kennyboy66_2 Posts: 2,598 Forumite
    Andrew64 wrote: »
    Who in their right mind wants gilts that mature in 40 years?

    Today's ones mature in 2022. At least there is still a market for short and medium term debt.

    If you thought deflation was a real risk then they would be great - however as the UK & USA will rather have inflation than deflation (by Quantative Easing) then it seems unlikely.
    US housing: it's not a bubble

     Moneyweek, December 2005
  • Sir_Humphrey
    Sir_Humphrey Posts: 1,978 Forumite
    kennyboy66 wrote: »
    If you thought deflation was a real risk then they would be great - however as the UK & USA will rather have inflation than deflation (by Quantative Easing) then it seems unlikely.

    Do you think that QE should be enough to kick-start the economy then?
    Politics is not the art of the possible. It consists of choosing between the disastrous and the unpalatable. J. K. Galbraith
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