Failed UK Bond Auction Has Traders Worried
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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.
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