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Explained in plain English

Why are bonds being sold off?

Investors are worried about high inflation eroding the value of their returns, so they're selling bonds. This reduces demand, driving down bond prices and pushing up their yields (the return for the buyer), which is the government's borrowing cost.

Stories that explain this

Britain's 30-year borrowing costs reached 6% today, a 24-year high

Related explainers

Will my mortgage payments rise? Will my savings earn more interest? Who pays the government's debt? Why is the UK hit hardest? Why do bond markets matter? Why do bond prices change? Why are bond sales costing us? What are bond yields?

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