Market Extra: As bond yields spike, Bank of England widens U.K. market intervention in second effort this week to calm volatile markets

by | Oct 11, 2022 | Stock Market

The Bank of England said Tuesday that it will expand its daily U.K. bond purchase operations to include index-linked gilts, the second move this week aimed at trying to calm market volatility. “These additional operations will act as a further backstop to restore orderly market conditions by temporarily absorbing selling of index-linked gilts in excess of market intermediation capacity,” the BoE said in a statement on Tuesday, adding that it has also consulted with the Debt Management Office.

The inclusion of those index-linked bonds will run from Oct. 11 to 14, alongside its existing daily conventional gilt purchase auctions, the BoE said. But it remained to be seen if a second-day move by the central bank to calm markets will be effective. Investors are anxiously looking ahead to Friday, when the central bank’s emergency bond-buying program announced last month are scheduled to end. The BoE announced additional m …

Article Attribution | Read More at Article Source

Share This