Comment 

The cost of rising yields

Chris Dillow

Chris Dillow
The cost of rising yields

The "bond bubble" seems to be deflating. Since early April, ten year gilt yields have risen by almost half a percentage point. And there might be a lot more to come. Russell Jones of Llewellyn Consulting says the rise in yields is "potentially considerable." This poses the question: what impact would higher borrowing costs have upon the public finances?

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