LONDON — The Bank of England said on Wednesday it would buy long-dated UK government bonds “to any extent necessary” to restore market order after a series of government tax cuts pushed up borrowing costs.
The furious sell-off in UK government bonds over the past few days has usually rocked staid parts of the financial markets. According to analysts, pension funds and insurers holding financial derivative instruments linked to UK debt in particular faced the possibility of heavy losses. The BOE stepped in to try to prevent those losses from spiraling out of control, analysts said.
https://www.wsj.com/articles/bank-of-england-to-buy-bonds-to-stop-crisis-spread-11664360313 Bank of England to Buy Bonds in Bid to Stop Spread of Crisis