Where is Rachel Reeves?

Bond yields are soaring to their highest levels in almost 30 years and sterling is sliding. The government’s economic strategy is facing its first real test, and where is the chancellor? So far Rachel Reeves has been silent, preparing for a jaunt to China. At some point she will have to address the markets – or risk turning a round of jitters into a full-blown crisis.

Over the last few days, the markets have turned decisively on the UK. Yesterday, the yield on 10-year gilts hit its highest level since the financial crisis of 2008, while the yield on the 30-year gilt hit the highest level for 30 years. The UK is now paying more to service its debt than Greece, and very soon that will mean rising mortgage rates, and more companies going bankrupt. There is no mystery about what has happened. Investors have worked out that Reeves’s Budget, with its mix of big increases in borrowing, and higher company taxes, has failed, and will trap the economy in stagnation.