DMO Tells Bill Gross To Chill Out Over Our “bed of nitroglycerine”
Seems like the DMO guys are more hella chill than the Californian bond king…
Responding to Pimco’s Bill Gross comment last month that UK gilts were sitting on a “bed of nitroglycerine“, Robert Stheeman, head of the UK Debt Management Office said that he was “very comfortable” sitting on nitroglycerine.
He said the political elites were rising to the challenge, greatly reducing the chances of a gilts strike.
Telegraph: “Politicians of all colours are taking the situation very seriously indeed. Investors derive a lot of comfort that there is agreement across the spectrum that the deficit needs to be brought under control,” he told the Euromoney bond congress in London. While a hung Parliament would create uncertainties, it might prove “less disruptive” than assumed.
Maybe that will convince Jim.
Erm, not likely. Rogers, went further than Gross on the subject warning that the pound could “collapse” within weeks, heralding a downturn worse than 2008/09 and in turn leading to a “global economic winter”.
February 26, 2010
Let me see, Gross is on the buy side, so he has to make choices, this guy is on the sell side, and the only thing he HAS to sell is UK debt. I do not want his job.