The Bank of England stepped in with another emergency intervention in the markets on Tuesday in an attempt to stave off a “fire sale” of UK government bonds by pension funds.
In the second update for its bond-buying scheme in as many days, the Bank said it would expand its operations to include purchases of index-linked gilts, a type of UK government bond that tracks inflation.
Threadneedle Street said it was taking the step to further increase its emergency programme, which is due to expire on Friday, after a “significant repricing” for UK government debt this week.
UK government borrowing costs rose sharply on Monday to the highest levels since the financial market chaos triggered by Kwasi Kwarteng’s mini-budget in September, despite renewed efforts by the to smooth over the turmoil.
Read More : https://www.theguardian.com/business/2022/oct/11/bank-of-england-bond-buying-pension-funds-kwasi-kwarteng
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