Debt markets suffer a crisis of confidence

By Ben Harrington, Markets Reporter Published: 9:46PM GMT 01 March 2010

Confidence was primarily strike by ascent worries about the awaiting of a hung parliament.

Bank of England interpretation additionally showed that in Jan unfamiliar investors sole the majority gilts in 9 months, offloading �1.49bn of supervision holds nonetheless made at home investors paid for �2.5bn of gilts, the initial enlarge given September.

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The awaiting of the new issues weighed on certainty during the day"s session.

Indeed, traders will be profitable close courtesy to the Debt Management Office"s (DM0) try to sell billions of pounds value of supervision holds this week.

The DMO is due to sell �2bn of 30-year gilts on Tuesday and �4bn of 5-year gilts on Wednesday.

Mohit Kumar, strategist at Deutsche Bank, pronounced new sales processes could be an additional "another bearish factor" and "the marketplace will need to set up in a benefaction prior to the auctions".