The bond markets are inarguably important. Governments and central banks support public spending by selling bonds to investors on financial markets. When those investors lose confidence, demand for bonds falls, and governments feel compelled to pay higher rates to keep investors on side. When the cost of borrowing shot up globally after the pandemic, it hit Britain particularly hard. Having borrowed significantly to bail out the banking sector in 2008 and again during Covid, the country’s national debt now stands at 101% of its GDP. This imposes real constraints on public spending. But the idea of a funding crisis is overblown.