Well that's one way to sell gilts.
Discussion
"Banks bought 91pc of the £39.8bn of net issuance of new gilts with purchases totalling £36.1bn, compared to the £11.4bn of UK debt bought in the preceding six months.
The increase in UK bank purchases of gilts has offset the fall in demand among overseas investors.
In the six months to the end of October foreign buyers bought £33.5bn of gilts, however over the half year to the end of April this more than halved to £12.4bn.
UK banks have traditionally been the largest buyers of gilts because of their need to match their large sterling liabilities with sterling assets.
However, the recent increase in their purchases is likely to have been partly due to increased regulatory pressure to maintain greater holdings of liquid assets."
http://www.telegraph.co.uk/finance/economics/gilts...
Nice to see the government can always twists someone's arm to lend it cash. What next, "We need to ensure pension funds are safely invested", so rules to make pension funds buy more 'safe' gilts...
The increase in UK bank purchases of gilts has offset the fall in demand among overseas investors.
In the six months to the end of October foreign buyers bought £33.5bn of gilts, however over the half year to the end of April this more than halved to £12.4bn.
UK banks have traditionally been the largest buyers of gilts because of their need to match their large sterling liabilities with sterling assets.
However, the recent increase in their purchases is likely to have been partly due to increased regulatory pressure to maintain greater holdings of liquid assets."
http://www.telegraph.co.uk/finance/economics/gilts...
Nice to see the government can always twists someone's arm to lend it cash. What next, "We need to ensure pension funds are safely invested", so rules to make pension funds buy more 'safe' gilts...
"Banks and building societies bought £7.7bn of the £12.8bn of new gilts sold in April.
Over the last six months, their purchases have totalled £36.1bn, up from £11.4bn in the prior half-year and equivalent to 91pc of net issuance of £39.8bn.
Overseas buying of gilts, by contrast, fell to £12.4bn in the six months to April from £33.5bn in the prior half-year, probably reflecting a slowdown in capital flight from struggling peripheral Eurozone economies.
Non-bank domestic investors, meanwhile, sold £8.2bn of gilts in the latest six months."
Over the last six months, their purchases have totalled £36.1bn, up from £11.4bn in the prior half-year and equivalent to 91pc of net issuance of £39.8bn.
Overseas buying of gilts, by contrast, fell to £12.4bn in the six months to April from £33.5bn in the prior half-year, probably reflecting a slowdown in capital flight from struggling peripheral Eurozone economies.
Non-bank domestic investors, meanwhile, sold £8.2bn of gilts in the latest six months."
Fittster said:
Overseas buying of gilts, by contrast, fell to £12.4bn in the six months to April from £33.5bn in the prior half-year, probably reflecting a slowdown in capital flight from struggling peripheral Eurozone economies.
Or does it reflect the fact that no-one nowhere wants to buy any kind of European debt?
anonymous said:
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What do you mean 'if' we have a crisis. This is one!. Its obvious we cant raise enough money on the international markets, how much longer can we go for?. This still debases our currency, dont think our western credit rating will fall, too many socialists in a love-in in the eu, but effectively our gov debt will soon be junk, if it isnt now. Cameron do something, NOW! not next week, not next year, sort this country out. anonymous said:
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And that's the beauty of owning the banks that are buying your damaged goods so you can use the money to keep spending near as dammit the same amount as what got us in this mess in the first place.Every time someone with a vote gets a bit shouty about reduced investment in gay whales/educashun/ill people, flog a few more gilts to yourself and get the Capital One card out again.
PIIGs are maybe even more honest about it than we are.
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