Why Rachel Reeves should ignore the bond market panic - Richard Murphy

30th August 2025

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.

Read a transcript with links at
https://www.taxresearch.org.uk/Blog/2025/08/29/why-rachel-reeves-should-ignore-the-bond-market-panic/