Investors are dumping gilts because they are worried about the UK economy. Suggestions from Prime Minister Theresa May that Britain is in for a ‘hard Brexit’, along with rumours of disagreement between Chancellor Philip Hammond and the rest of the Cabinet over the terms of Britain’s exit from the EU are fuelling uncertainty.
What I wonder is how Ricthie will tell us that this proves the need for Green QE.
Everything does prove it of course. But how will rising yields be used to prove it?