Britain: Bond Auction Fails

March 25th, 2009

Via: Bloomberg:

U.K. gilts slumped after demand at an auction of bonds fell short of the amount offered, the first time the Treasury failed to attract enough bids at a sale of regular debt in 14 years.

Investors bid for 1.63 billion pounds ($2.4 billion) of the 40-year securities, less than the 1.75 billion pounds of 4.25 percent notes slated for sale, the U.K. Debt Management Office said today in a statement from London.

“Basically it’s the first failed auction,” said John Wraith, head of sterling interest-rate strategy at RBC Capital Markets in London. “They didn’t receive enough to cover it all so the market has obviously sold off extremely heavily.”

Posted in Collapse, Economy | Top Of Page

One Response to “Britain: Bond Auction Fails”

  1. thucydides says:
    March 25, 2009 at 2:32 pm

    Kevin,

    What are the implications of this? I know you’ve been saying to get out of pound Sterling assets for some time, is this the final death-knell or would you expect more yet to come?

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