It's early days. Mark Carney is still finding his feet as the new governor of the Bank of England. Financial markets get things wrong with stunning regularity. All this is true, yet the fact remains that the City's response to Threadneedle Street's forward guidance policy has been negative. The yield on a 10-year government gilt – a good guide to the long-term cost of borrowing – has been on a rising curve ever since Carney advised that interest rates were on hold at least until the unemployment rate came down to 7%. Probably. Sort of. Unless something untoward happened that would force the Bank to act. In which ... (full story)