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Explained in plain English

Why are bond sales costing us?

The Bank of England is now selling off the government bonds it previously bought. Because interest rates have risen, the value of these older bonds has fallen. The Treasury, which promised to cover any losses, is now paying the difference directly from taxpayer money. This means less money for public services or potentially higher taxes in the future.

Stories that explain this

Bank of England bond sales cost the Treasury £108bn since 2022

Related explainers

What is quantitative easing? Who is the Treasury? Why do bond markets matter? Why do bond prices change? What are bond yields? What are bonds? What are bonds, anyway? Why are bonds being sold off?

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