An auction of government-guaranteed bonds failed for the first time in seven years today.
The Debt Management Office (DMO) – which sells gilts to raise money on behalf of the Government – said it had attracted bids worth only £1.63 billion for a tranche of gilts worth £1.75 billion.
The Treasury gilts are due to mature in 2049.
But the Treasury moved quickly to dismiss claims that the appetite for Government bonds was falling amid concerns about public debt and worries that the Government may be forced to step up the number of gilts it issues.
Edit: This too….
March 25 (Bloomberg) — U.S. stocks retreated after a Treasury auction of five-year notes drew a higher-than-forecast yield, spurring concern government attempts to lower interest rates will fail amid record sales of bonds.