Britain’s politicians need to worry less about the bond markets – and more about the Bank of England

A spectre is haunting British politics: the bond markets.

Defending Keir Starmer after the disastrous local election results earlier this month, the chancellor, Rachel Reeves, warned that a leadership contest would trigger the wrath of those investors who lend the state money by buying and selling UK government bonds (also known as gilts). The prospect of Andy Burnham winning that contest prompted shriller warnings: the left-leaning contender, after all, had dared to suggest governments should stop “being in hock” to the bond markets.