Gilt Trip
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Government Bond Markets - What's Happening in the Markets?
Government's borrowing costs effectively determines households' borrowing costs. Every 1% rise in that mortgage rate equates to around £180 extra every month on your mortgage bill. That is a large, if you're someone on medium income, that's a very large hit. And that's all coming from what's happening essentially in the government bond markets. The market expectations of how high interest rates will have to rise because the Bank of England will respond to that.
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