I’m afraid a bond yield of 2.3% on 10 year UK government debt isn’t the market saying ‘well done you, nice deficit reduction plan you’ve got there mate’ it’s the market screaming ‘for Christ’s sake, everything is fucked and we’re terrified about vanishing growth’.
Well, yes, but bond yields of 15% and rising (Greece maybe?) or 6% (Italy, Spain) or just rising bond yields (France) are also indicators that:
it’s the market screaming ‘for Christ’s sake, everything is fucked
So, which set of problems would you prefer to have?