Keeping bond vigilantes at bay

Russ Mould, investment director at AJ Bell, says that Chancellor Philip Hammond is not being punished by the markets for his spending plans so far.

That might mean he plays it fairly safe when it comes to public spending announcements in today's Budget.

Mr Mould points out that Argentina has 60% borrowing costs compared with the UK which has borrowing costs of 1.4%, as measured by the 10-year benchmark bond.

"He doesn't want to be seen to be too free and easy with money because the bond vigilantes will come back and start increasing his borrowing costs."