Chancellor George Osborne seems unsure about how to interpret movements in the bonds market.
Now, rising yields are supposed to signal the success of the Bank of England's adoption of forward guidance, and confidence in the UK economy.
In fact, yields on 10 year gilts are up since the chancellor started his talk; implying a rise in the cost of government borrowing.
Previously Osborne has cited falling yields as a sign of economic success. Now the chancellor stresses that the "counterfactual would have been even bigger increases in yields".
ah! rising gilt yields is "a sign of confidence returning" says the Chancellor. So were falling gilt yields. what if they stay the same?— Faisal Islam (@faisalislam) September 9, 2013