A successful gilt auction?

The latest gilt auction got away - so far the Government has been able to fund its borrowing needs. But at what cost...?

From WSJ, DJ Newswire:
Analysts said the auction stock had appeared cheap relative to neighboring issues on the yield curve.
The healthy demand for the paper was expected, "given the pressure on U.K. banks to buy the so-called high grade quality assets that gilts are meant to be on their bank capital books, with the patent cheapness of the stock relative to its peers, and the very steep profile of the front of the U.K. gilt curve offering obvious attractions," said Marc Ostwald, Monument Securities strategist.
Furthermore, Wednesday's Bank of England buyback made the auction even more attractive, he added.
Jason Simpson, market strategist at Royal Bank of Scotland, agreed, saying the issue should also be eligible for the BOE's three-year to ten-year buyback expected on Jan. 20.

In other words they were sold because the interest rate we taxpayers have to pay is high, banks are being made to buy them and the Bank of England may buy them back anyway.