The Treasury can't sell gilts during the Olympics because no traders are going to work

The Olympics' reverse Midas touch strikes again.

The Financial Times reports that the Government is suspending its weekly auctions of Treasury gilts for a four-week period between mid-July and mid-August over fears that "too many bond traders will be working from home – or not at all – during the Olympics."

Norma Cohen writes:

A spokesman for the DMO confirmed that 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.

Such thin staffing raises the prospect of a "sloppy" auction that could force the Exchequer to pay more to borrow. "Why take operational risk when you don’t have to?" the DMO spokesman said.

The two lines which are expected to be unusable during the Games are the Central and Jubilee lines, which serve Stratford station, the main access for the Olympic stadium. They are also the main routes, respectively, to Bank and Canary Wharf stations, the two with the highest concentration of bankers. Worse, many stations used in commutes to those destinations are also expected to be affected. London Bridge station, an interchange between many commuter rail lines and the Jubilee, is expected to be "exceptionally busy" between 7 and 9:30 in the morning and 4 and 10:30 at night. Bond Street, as an interchange between the two key lines, carries warnings that it may take up to an hour to get from street level to the platforms.

Cohen adds:

The absence of new gilts auctions may have a serious knock-on effect, economists said. If, as expected, the Bank of England gives the go-ahead this week for another round of gilts purchases to help boost the economy, it may have to slow these down because of the Olympic effect.

Buying gilts in a market where no new securities are being issued could distort interest rates in unpredictable ways, economists warned.

The Olympics' reverse Midas touch continues.

The Olympic stadium and the Orbit thing. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty
Show Hide image

Westminster terror attack: What we know so far

The attack, which left a police officer and bystanders dead, was an attack on democracy. 

We had just wrapped up recording this week's podcast and I was on my way back to Westminster when it happened: the first terrorist attack on Parliament since the killing of Airey Neave in 1979. You can read an account of the day here.

Here's what we know so far:

  • Four people, including the attacker, have died following a terrorist attack at Westminster. Keith Palmer, a police officer, was killed defending Parliament as the attacker attempted to rush the gates.
  • 29 people are in hospital, seven in critical condition.
  • Three French high school students are among those who were injured in the attack.
  • The attacker, who was known to the security services, has been named as Khalid Masood, a 52-year-old British born man from Birmingham, is believed to have been a lone wolf though he was inspired by international terrorist attacks. 

The proximity of so many members of the press - including George, who has written up his experience here - meant that it was very probably the most well-documented terrorist attack in British history. But it wasn't an attack on the press, though I'd be lying to you if I said I wasn't thinking about what might have happened if we had finished recording a little earlier.

It was an attack on our politicians and our Parliament and what it represents: of democracy and, ultimately, the rights of all people to self-determination and self-government. It's a reminder too of the risk that everyone who enters politics take and how lucky we are to have them.

It was also a reminder of something I take for granted every day: that if an attack happens, I get to run away from it while the police run towards it. One of their number made the ultimate sacrifice yesterday and many more police and paramedics had to walk towards the scene at a time when they didn't know if there was another attacker out there.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.