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MM084: Carnage in UK Bond/FX Markets – What happened, what’s next?

Market Maker

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Is the Bank of England Going to Have to Rake Rates?

On Wednesday, 935 mortgages were pulled from the market just in that one day alone. So mortgage rates are linked to long duration government bond yields. The media then jump all over and start to portray a picture that's not really reality. And it kind of feeds this panic. Raising interest rates at this point in time wasn't going to be the solution this week.

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