LONDON – The Bank of England said on Wednesday it would buy long-dated British government bonds “on any scale necessary” in an effort to restore order in the market after a raft of government tax cuts raised borrowing costs.
Angry selling of British government debt in recent days has swept steady parts of the financial markets. Pension funds and insurance companies that hold derivatives linked to UK debt in particular face the prospect of heavy losses, according to analysts. Analysts said the Bank of England stepped in to try to prevent these losses from getting out of control.
from San Jose News Bulletin https://sjnewsbulletin.com/bank-of-england-buys-bonds-in-an-attempt-to-stop-the-spread-of-the-crisis/
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