Wednesday, 25 March 2009

A tale of two auctions

Today, Brown's huge borrowing plans ran straight into the granite wall known as reality. The national debt office wanted to sell £1.750 million of 30 year old Treasury gilts. However, it was only able to sell £1,627 million. The auction was 7 percent short of its target.

This was the first time since 1995 that the UK gilts auction failed to cover the announced offering. More worrying for the Treasury, offered yields increased. The "tail", which measures the difference between the highest accepted yield and the average yield doubled.

In early March, the national debt office conducted a similar auction for £2,250 million. That auction received bids 1.4 times the offered amount, emphasizing the significance of today's demand shortfall.

Over the next two years, Brown wants to borrow over £120 billion per year to finance the biggest fiscal deficit since Hilter blew his brains out in the bunker. Today, Brown received a stark warning from the bond market. If the UK government wants more cash, it's going to have to pay for it in terms of higher yields.

The Bank of England can cut its policy rate down to zero, but bondholders want a proper rate of return.


Anonymous said...

Interest now need to go to 15 percent to make the UK attractive again for investors. This will either happen by will, or by events. You choose motherfuckers!

Anonymous said...

Don't worry, Darling has found the solution - he can print the money to buy the gilts. Why didn't anyone think of it before? This economics is easy! Just ask Gideon Gono.

Anonymous said...

Mervyn might need to print quicker than he realised.

Anonymous said...

Can't LLoyds and RBS just buy the ones the market doesn't want to help them meet their capital requirements?

Anonymous said...

Can Gordon Brown order Mervy King to print money if Mervyn King doesn't want to?
Housing Bear

K T Cat said...

Scary stuff indeed. The US debt auction didn't go much better.

Electro-Kevin said...

Did you mean gilt or did you mean quilt ?

If the latter - Summer is on the way. WTF did he expect ???

Brown wouldn't even get through the first round of The Apprentice.

Anonymous said...

成人電影,情色,本土自拍, 寄情築園小遊戲, AV女優,成人電影,情色,本土自拍, A片下載, 日本A片, 麗的色遊戲, 色色網, ,嘟嘟情人色網, 色情網站, 成人網站, 正妹牆, 正妹百人斬, aio,伊莉, 伊莉討論區, 成人遊戲, 成人影城,
ut聊天室, 免費A片, AV女優, 美女視訊, 情色交友, 免費AV, 色情網站, 辣妹視訊, 美女交友, 色情影片 成人影片, 成人網站, A片,H漫, 18成人, 成人圖片, 成人漫畫, 情色網, 日本A片, 愛情公寓, 情色, 舊情人, 情色貼圖, 情色文學, 情色交友, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 色情遊戲, 情色視訊, 情色電影, aio交友愛情館, 色情a片, 一夜情, 辣妹視訊, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊, 視訊美女, 美女視訊, 視訊交友, 視訊聊天, 免費視訊聊天室, 情人視訊網影音視訊聊天室, 視訊交友90739, 成人影片, 成人交友, 本土自拍, 免費A片下載,

美女交友, 嘟嘟成人網, 成人貼圖, 成人電影, A片, 豆豆聊天室, 聊天室, UT聊天室, 尋夢園聊天室, 男同志聊天室, UT男同志聊天室, 聊天室尋夢園, 080聊天室, 080苗栗人聊天室, 6K聊天室, 女同志聊天室, 小高聊天室, 情色論壇, 色情網站, 成人網站, 成人論壇, 免費A片, 上班族聊天室, 成人聊天室, 成人小說, 微風成人區, 色美媚部落格, 成人文章, 成人圖片區, 免費成人影片, 成人論壇, 情色聊天室,

成人交友, 嘟嘟成人網, 成人電影, 成人, 成人貼圖, 成人小說, 成人文章, 成人圖片區, 免費成人影片, 成人遊戲, 微風成人, 愛情公寓, 情色, 情色貼圖, 情色文學, 做愛, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 寄情築園小遊戲, 色情遊戲情色視訊, 情色電影, aio交友愛情館, 言情小說, 愛情小說, 色情A片, 情色論壇, 色情影片, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊美女, 視訊交友, 視訊聊天, 免費視訊聊天室, a片下載, aV, av片, A漫, av dvd, av成人網, 聊天室, 成人論壇, 本土自拍, 自拍, A片,成人電影,情色,本土自拍,