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The Bank of England just learned a lot about bond market liquidity

Section: Daily Dispatches

By Tracy Alloway
Bloomberg News
Wednesday, August 10, 2016

On Tuesday the Bank of England didn't manage to buy all the gilts it wanted at a reverse auction -- the first such shortfall since it began its bond-buying program back in 2009. The "uncovered auction" happened as investors proved reluctant to part with their holdings of longer-dated U.K. government bonds and could create a headache for policy makers seeking to offset the economic impact of the Brexit referendum by lowering borrowing costs.

The central bank snafu sparked a lively discussion over whether the Bank of England is reaching Japan-like technical limits in its sovereign-bond purchases or simply suffering from a temporary summertime trading lull. While the fact that today's auction proceeded without incident suggests the latter, the hiccup still speaks to a truism of the long-running debate over the ease of trading in the bond market: that a lack of liquidity is the flip side of a rampant search for yield amid low interest rates.

Or as Peter Boockvar, chief market analyst at The Lindsey Group, quipped: "A funny thing happened on the way to more QE from the Bank of England as some investors wised up and decided to not sell their longer-dated paper. ... After all, why give up higher-yielding bonds when the alternatives with the cash are pathetic?" ...

... For the remainder of the report:


Gold Standard Intersects 126.2 Meters of 3.95gpt Gold
At North Dark Star Oxide Deposit in Nevada's Carlin Trend

Company Announcement
Tuesday, August 9, 2016

VANCOUVER, British Columbia, Canada -- Gold Standard Ventures Corp. (TSXV: GSV; NYSE MKT:GSV) today announced assay results from the first three step-out core holes at the recently discovered North Dark Star oxide gold deposit on its fully owned and controlled Railroad-Pinion Project in Nevada's Carlin Trend. The results significantly increase the size of the North Dark Star deposit while also enhancing its prospective grade and establishing the orientation of a favorable trend supporting the potential for further expansion of the higher-grade zone.

The primary objective of this year's drill program at North Dark Star was to find a continuation of the high-grade zone discovered in core hole DS15-13 (15.4 meters of 1.85 grams of gold per tonne and 97 meters of 1.61 grams per tonne) at the end of last year's drill program. Hole DS16-08 located 100 meters south of DS15-13 returned multiple, significant, oxidized intercepts containing gold values above the cutoff grade established in the Dark Star NI43-101 resource estimate announced on March 3, 2015. Hole DS16-08 returned a 126.2-meter section grading 3.95 grams per tonne including higher-grade intervals of 44 meters of 4.70 grames per tonne, 17.9 meters of 5.6 grams per tonne, and 7.9 meters of 10.7 grames per tonne.

To see section maps and the drill plan:

... For the complete announcement:

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