Wednesday, March 25, 2009
Gilt auction today was not completely covered
Wednesday’s £1,750m auction of 4¼ per cent Treausury gilts dated 2049 failed, with a bid-to-cover ratio of 0.93. That’s the first UK conventional gilt auction failure since 1995 according to Dow Jones. So is this a sign of things to come? And is this why Bank of England governor Mervyn King was so concerned about further government spending on Tuesday?