Kybosh on QE helps £5bn Gilt syndication
A sell-off in Gilt yields following better than expected growth figures and an upward revision in outlook by Standard & Poor’s provided the perfect backdrop for the United Kingdom to tap its 2040 conventional bond through a £5bn syndication this week. However, the syndication process attracted some criticism, with one investor complaining that the regular sales are having a distorting affect on auctions.
GDP data announced on Tuesday, the day before the debt management office went into the market, showed that gross domestic product grew by 0.8% in the third quarter, double the 0.4% rate predicted by most analysts.
This, together with inflation remaining well above target, removed expectations of quantitative easing
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