Failed UK Bond Auction Has Traders Worried

Traders today are talking about the failed bond auction in the U.K. The U.K. government failed to find enough buyers for the 1.75 billion pounds of 40-year gilts they were looking to sell. It was the first time since 2002 that investors shunned the country's bonds.
Investors view the news as a warning sign as the country is forced to use "quantitative easing" to stimulate the economy. The U.K. government is looking to sell a record 146.4 billion pounds in debt this year.
The U.S. govenment will also have to sell record amounts of bonds to finance the deficit. Risk of a failed auction in the U.S. is low, but with the U.K.'s failed attempt it could be a warning sign.
Investors view the news as a warning sign as the country is forced to use "quantitative easing" to stimulate the economy. The U.K. government is looking to sell a record 146.4 billion pounds in debt this year.
The U.S. govenment will also have to sell record amounts of bonds to finance the deficit. Risk of a failed auction in the U.S. is low, but with the U.K.'s failed attempt it could be a warning sign.
You May Also Be Interested In
- SEC Confirms Game Service Roblox (RBLX) Part Of ‘Active Investigation’ - Bloomberg
- EVgo (EVGO) falls on headline Trump to halt EV charging programs
- Bank Of America Has Agreed To Buy A $9 Billion Portfolio Of Residential Mortgage Loans From TD - Bloomberg
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!