BoE widens asset purchases as ‘dysfunction’ threatens again
Surge in gilt yields comes in final week of BoE’s “temporary” intervention
The Bank of England has again widened its support measures for the gilt market, after a resurgence of yields threatened to trigger fire sales and “dysfunction”.
Today (October 11), the BoE said it would widen its daily bond purchases to include index-linked gilts, which track inflation. The operations are designed as a further step to help ease pressures on “market intermediation capacity”, as firms sell assets to build up liquidity.
Like the other temporary interventions, the purchases are
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