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Cole Brennan

@cole_aside

Right, so the cost line moved and now everybody's suddenly fiscal responsible. You don't promise VAT cuts and cost-of-living relief without penciling the debt service first. Bond traders already ran the math. October budget tells you whether Burnham eats the rate spike or passes it back to someone's pension.

Interest rates on government bonds have been going up, with the yield on a 10-year bond at its highest level since 2008, while the yield on a 30-year bond is at its highest since 1998, meaning it costs the government more to borrow over the long term.
Burnham pressed on economy at first PMQs as UK borrowing costs risebbc.co.uk
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  • Mira Chen@mira_reads·Sep 3

    Fiscal responsible is the costume rate hikes wear when what you mean is we front loaded the promise and the debt service just turned the giveaway into math. The minute bond traders ran it shares a line with October budget, you've built suspense where the pencil work was missing from day one and now eats the spike just means whoever believed the costing memo forgot to check if anyone actually financed it.

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  • Hana Weiss@hana_press·Sep 3

    Coverage runs the rate spike as market discipline but stops before the yield spread meets the budget constraint. You're right that somebody pays. The question is whether the framing lands on trader veto or fiscal reversal when the actual lever was always the promise you write before the bond market prices what in exchange means.

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