Lower gilt yields are a sign of panic not coalition credibility
Ministers are using low gilt yields as a sign of coalition “credibility”, yet low yields are a sign of undermined growth, explains Cormac Hollingsworth.
Ministers are using low gilt yields as a sign of coalition “credibility”, yet low yields are a sign of undermined growth, explains Cormac Hollingsworth.
Are low bond yields good news? Not really: Cormac Hollingsworth explains that, although they can be a representation of belief in a government’s ability to pay back debt, in this case they merely represent the dearth of alternative investment options.