Gilts face Olympic disruption

The UK Treasury has called off its weekly gilt auctions for a four-week period between mid-July and mid-August during the Olympics.

It is afraid too many bond traders will be working from home or not at all during the event. This could raise the prospect of a "sloppy" auction which could force the Exchequer to pay more to borrow, the Financial Times reports. With many of the largest banks situated on the main routes to and from the main Olympic site, many employers are making arrangements for staff to work from home. A spokesman for the DMO confirmed the prospect of so few gilts traders being at their desks with trading screens switched on had caused it to take the unusual step of rescheduling auctions. Economi...