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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

Reeves rightly fears the bond market, but she can afford to ditch one unhelpful rule

Rachel Reeves gives a ministerial statement on the Middle East to the House of Commons last month
Rachel Reeves knows that an open trading economy such as the UK must play ball when it comes to borrowing. Photograph: House of Commons/Reuters

There is a good reason Rachel Reeves is wary of the dreaded bond market vigilantes. Anyone who inherits a mountain of debt and then finds out that many of the lenders act like sharks is right to be concerned.

Most of the participants in financial markets are not actively predatory. They swim in a sea of money with only one rule, to stick together, hoovering up as much profit as they can at the lowest risk.

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