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Bond yields are in a bubble
Manage episode 503102600 series 3475482
The media claims UK government borrowing costs have soared to 5.6%, spelling financial crisis for Rachel Reeves. But that’s nonsense. Bond yields are being distorted by a stock market bubble, not by government risk. Reeves shouldn’t issue bonds at these rates — she should wait for the crash that’s coming. In this video, I explain how bond yields really work, why the markets have it wrong, and what a wise chancellor should do now.
311 episodes
Manage episode 503102600 series 3475482
The media claims UK government borrowing costs have soared to 5.6%, spelling financial crisis for Rachel Reeves. But that’s nonsense. Bond yields are being distorted by a stock market bubble, not by government risk. Reeves shouldn’t issue bonds at these rates — she should wait for the crash that’s coming. In this video, I explain how bond yields really work, why the markets have it wrong, and what a wise chancellor should do now.
311 episodes
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