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Daniel Hannan MEP spanks the British Prime Minister
The latest UK bond offering is under-subscribed.
Yet the rating agencies are unfazed.
The latest UK bond offering is under-subscribed.
Gilts Tumble After GBP1.75B 4.25% 2049 Auction Is Uncovered
By Keith Jenkins
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--The U.K. government's latest gilt auction drew disappointingly poor demand Wednesday, data from the U.K. Debt Management Office showed.
The GBP1.75 billion tap of the 4.25% December 2049 Treasury gilt was uncovered, with a bid-to-cover ratio of just 0.93 times, sharply down from 2.03 at the previous auction of this bond, held Feb. 4.
(Hat tip to GRG555)By Keith Jenkins
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--The U.K. government's latest gilt auction drew disappointingly poor demand Wednesday, data from the U.K. Debt Management Office showed.
The GBP1.75 billion tap of the 4.25% December 2049 Treasury gilt was uncovered, with a bid-to-cover ratio of just 0.93 times, sharply down from 2.03 at the previous auction of this bond, held Feb. 4.
Yet the rating agencies are unfazed.
High debt-rated countries can weather crisis: Fitch
Agence France-Presse - 3/17/2009 6:34 PM GMT
Countries with highly rated sovereign debt can withstand the worst effects of the financial crisis, ratings agency Fitch said on Tuesday, citing the United States and some western European nations.
"High-grade sovereigns can absorb the near-term economic and fiscal costs of the financial crisis and respond to the current extreme shock, whilst still maintaining very strong credit quality over the medium to long term," Fitch said in a report.
"The US, Germany, France and the UK have an exceptionally high degree of fiscal financing and balance sheet flexibility," it added, citing these as the biggest countries with the top "AAA" rating.
Their financial strength "provides headroom to enact measures to counter the impact of the crisis and recession and to protect their economies," Fitch said.
Several European countries have seen their sovereign debt downgraded by major ratings agencies.
A downgrading of sovereign debt is a signal the underlying economic performance of a country, and its capacity to honour payments due on its sovereign debt bonds, are weakening.
Ratings agency Standard & Poor's has downgraded ratings of Spain, Portugal, Ukraine and Croatia, and Fitch warned Ireland this month that its long-term credit rating could be lowered.
Something rotten in New York City and London?
Agence France-Presse - 3/17/2009 6:34 PM GMT
Countries with highly rated sovereign debt can withstand the worst effects of the financial crisis, ratings agency Fitch said on Tuesday, citing the United States and some western European nations.
"High-grade sovereigns can absorb the near-term economic and fiscal costs of the financial crisis and respond to the current extreme shock, whilst still maintaining very strong credit quality over the medium to long term," Fitch said in a report.
"The US, Germany, France and the UK have an exceptionally high degree of fiscal financing and balance sheet flexibility," it added, citing these as the biggest countries with the top "AAA" rating.
Their financial strength "provides headroom to enact measures to counter the impact of the crisis and recession and to protect their economies," Fitch said.
Several European countries have seen their sovereign debt downgraded by major ratings agencies.
A downgrading of sovereign debt is a signal the underlying economic performance of a country, and its capacity to honour payments due on its sovereign debt bonds, are weakening.
Ratings agency Standard & Poor's has downgraded ratings of Spain, Portugal, Ukraine and Croatia, and Fitch warned Ireland this month that its long-term credit rating could be lowered.
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