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The money markets have unfrozen, with key measures of borrowing rates now back where they were before the Lehman collapse.The economic data have seen the better-than-expected non-farm payrolls, the continued strength of Chinese output and (according to Axa Investment Managers) the rebound in the new orders component of manufacturing indices above 50.
There are numerous measures of borrowing listed on page 160 of the OBR's Economic and Fiscal Outlook, depending on how many special factors you strip out of the total.
First, system-wide measures of borrowing and "maturity mismatch", where banks use short-term funding to buy long-term assets.
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The yield on benchmark 10-year US Treasury bonds, which measures the cost of borrowing for the American government, slipped below 2%, as investors sought a haven from the storm.
Both Libor and Euribor measure the cost of borrowing for U.S. banks yet the latter was significantly higher than the former, he added.
The London interbank offered rate, a measure of borrowing costs, fell below 0.5percentt on Monday in another sign that credit markets were responding to huge government interventions.
Benchmark seven-day repurchase rates, another measure of borrowing costs, briefly soared as high as 25 percent on Thursday, up from 8.5 percent on Wednesday, before closing at 11.2 percent.
The yield on the 10-year Spanish sovereign bond, a measure of borrowing costs, was at 6.635 percent, up 0.061 percentage point.
Mr. Wattret said the respite should help bring down yields, or interest rates, on the sovereign bonds of troubled countries like Spain, a measure of borrowing costs that has been spiking to near-unsustainable levels on fear that the euro crisis would spread.
That measure of borrowing has fallen by only 13% - or roughly an eighth - since the coalition came to power, from 5.3% of GDP to 4.6% of GDP.
By April of this year it had decided that Mr Osborne's measure of borrowing would still be 4% this year, for all his efforts.
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