Borrowing costs fall as interest rate hike fears ease

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Government borrowing costs fell sharply on Tuesday, after a dovish speech from Bank of England governor and revived hopes of a Middle East peace deal led traders to pare back bets on central bank interest rate hikes.

Gilts rebounded across the curve, outperforming their European peers.

The UK’s two-year and 10-year government bonds fell as https://www.cityam.com/borrowing-costs-fall-as-rate-hike-fears-ease/">[...]