Indeed....borrowing costs up again this morning...

We might be approaching the point where something needs to change, i.e. announce more tax rises or spending cuts outside normal announcements.

Also worth noting that BOE is currently actively selling down the bonds from its asset purchase programme (QE) rather than just letting the positions unwind as they mature. Only a little bit each month, but still. They might need to stop doing that, as its putting more supply into a market that is signalling it really doesnt want any more UK govt debt thanks.

Posted By: Under soil heating, Jan 9, 09:54:10