What this data makes clear is that to date the government has borrowed no money in the current financial year.
The claim being that QE has meant the BoE has financed everything by printing money to buy up the gilts issued. No, don’t say yes or no to that, just run with the idea to explore the implications.
What this data also means is that so far this year no effective demand has been made of the bond markets to support the government.
The implication of that being?
Quite, we can’t take current market interest rates or prices as being indicative of the government’s demands upon the market for financing, can we?
And yet the Uno-Professore will be back tomorrow to insist that low market interest rates reflect the market’s desire to have government bonds, won’t he?