UK government borrowing costs have climbed to their highest levels in decades – and suddenly the bond market is back in focus.
In this episode of Investing Unlocked Extra, Georgie Frost is joined by author and award-winning investment journalist Cherry Reynard to unpack what’s happening in the gilt market, why investors are getting nervous about Britain’s finances and what it could mean for mortgages, pensions and the wider economy.
They discuss:
- What gilts actually are – and why they matter
- Why rising yields affect mortgage rates and borrowing costs
- Whether this is another “Liz Truss moment”
- The role of inflation, energy prices and political instability
- Why bond markets care so much about fiscal credibility
- Whether UK government debt is becoming a problem
- How gilts show up in pensions and investments
- Whether bonds are actually attractive again for investors
Cherry also explains the famous “bond vigilantes” idea, why markets can intimidate governments, and whether Britain’s finances are more fragile than many people realise.
If you’ve heard people talking about gilt yields and wondered why it matters to your own money, this episode breaks it down clearly, calmly and without jargon.
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What is Investing Unlocked?
Investing Unlocked is a smart, straight-talking podcast that decodes the jargon for people who want to make more of their money and understand what really drives investment performance.
Join Georgie Frost, multi-award-winning financial broadcaster, with regular guest Simon Lambert, alongside an impressive lineup of leading financial experts, as they go beyond the latest finance stories to explore the building blocks of investing, the behaviour behind it, the history that shaped it, and the big ideas influencing what happens next.
As investing moves to the centre of financial life in 2026, the show invites in the people traditional finance has left behind.
Investing Unlocked is sponsored by PensionBee.