The message was that in the battle against inflation, monetary and fiscal policy should be heading in the same direction and independent institutions – in Britain's case, the Office for Budget Responsibility (OBR) – should not be ignored. As compelling as this analysis is of why bond vigilantes chose to target the now defunct Liz Truss government, it showed great chutzpah. The yield on the closely followed 10-year Treasury bond climbed to 4.276 per cent, the highest level since the peak of the great financial crisis of 2008. It will be short-lived, because what happens in the US, as we learnt at the start of the great financial crisis in 2008 and the Covid19 lockdowns in March 2020, has a nasty habit of crossing the oceans. Meanwhile, at the nation's airports, flights in the same week reached 88 per cent of 2019 levels and that's before half-term.

Source: Daily Mail October 22, 2022 01:04 UTC