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Gilt auction failure.

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Comments

  • chupov
    chupov Posts: 53 Forumite
    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.

    Nothing to do with the fact that the BoE is using Quantitative Easing money to buy such bonds, I'm sure ...... :rotfl:

    Maybe tomorrow, better today
  • chupov wrote: »
    Nothing to do with the fact that the BoE is using Quantitative Easing money to buy such bonds, I'm sure ...... :rotfl:

    Yes, the auction was 3 times oversubscribed because thats how many bids the BoE put in themselves.........

    Obviously.
  • purch
    purch Posts: 9,865 Forumite
    the auction was 3 times oversubscribed because thats how many bids the BoE put in themselves.........

    So thats how QE works !!!! :rotfl:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • chupov
    chupov Posts: 53 Forumite
    Yes, the auction was 3 times oversubscribed because thats how many bids the BoE put in themselves.........

    Obviously.

    Bonds which fall under the target range of the Quantitative Easing programme (such as the ones today) will attract a lot more interest than ones which don't (such as the ones in the failed auction)

    It's all about being sure that there's a 'greater fool' who will take the gilts off your hands with a 'guaranteed' profit for you ... and there are no greater fools than the shower of idiots running UK economic policy right now.. :rotfl: Have a word with them for me when you pick up your next paycheck from them

    Maybe tomorrow, better today
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    chupov wrote: »
    Bonds which fall under the target range of the Quantitative Easing programme (such as the ones today) will attract a lot more interest than ones which don't (such as the ones in the failed auction)
    Yes, Merv will be buying up 10-25 year Gilts (dunno whether that'll just be the fixed or index-linked ones as well). Longer-dated Gilts are much less gilt-edged as the holders would have to flog them to people prepared to hand over their own dosh...
  • chupov
    chupov Posts: 53 Forumite
    ManAtHome wrote: »
    Yes, Merv will be buying up 10-25 year Gilts (dunno whether that'll just be the fixed or index-linked ones as well). Longer-dated Gilts are much less gilt-edged as the holders would have to flog them to people prepared to hand over their own dosh...

    Unfortunately, that sort of thinkng is beyond our NuLab stooge's ability to grasp

    Guess an inability to grasp economics extends right from the top of the party downwards to the card carrying internet forum monitoring force :rotfl: still - u gotta make sure the internet stays 'on message' :D

    Maybe tomorrow, better today
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