UK gilts slip as markets waits for auction
Published September 11th, 2007
British gilts fell early on Tuesday as the market awaited an auction of long-dated debt.
Prices had gone up again in the previous session with yields hitting a five-month low.
“There’s a little bit of profit-taking,” said Andy Chaytor of RBS Financial Markets. “I’m surprised the long end is holding up as much as I thought there would be more concession going into the auction.”
The Debt Management Office is planning to sell 2 billion pounds worth of 35-year bonds at around 0930 GMT. But traders are worried that demand may be muted given the recent volatility in debt markets and credit squeeze.
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