BoE to buy bonds on ‘whatever scale is necessary’
Turmoil in gilt markets forces pension funds to dump assets to meet margin calls
The Bank of England was forced into a major intervention in the UK government bond market today (September 28), as surging yields began to trigger financial instability.
The BoE said it would buy longer-dated government bonds – gilts – on “whatever scale is necessary” to restore “orderly market conditions”, starting today.
The announcement came just days after the monetary policy committee (MPC) approved the start of outright sales of government bonds held under the BoE’s quantitative easing
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