Adam Lent

Fascinating to hear an interview (go to 8.40am slot) on the Today programme this morning with someone who actually works on the bond markets rather than just comments on them. In total contradiction of the claim that the markets are very nervous about levels of government borrowing and only remain calm currently because they expect George Osborne to be Chancellor in a few months, this Morgan Stanley employee sounded very sanguine.

 As far as he was concerned the banks would hoover up gilts even after quantitative easing had finished. And even if there were a ‘rush to safety’ across the world, he expected that to increase demand for gilts from UK institutions.

Time maybe for the deficit hawks to ditch this particular argument.