'Material risk' to UK financial stability with part of pension-linked market 'dysfunctional', Bank of England warns

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It comes after the cost of government borrowing continued to rise yesterday

.Gilt yields, the interest rate payable on government bonds, rose on Monday, near the 5% highs of 27 September, the day before the Bank made its first intervention.

That took place when the Bank revealed it had bought £1.947bn of index-linked bonds on Tuesday, adding that it had rejected £466.9m of offers to sell to the central bank.The yield on 30-year bonds rose back to 4.8% for a short time, having been down at 4.4% around lunchtime.that are to be repaid in 20 to 30 years time, in the wake of chancellor Kwasi Kwarteng's mini-budget announcement.

That is well above the $1.03 record low level the UK currency sank to in the wake of the early market reaction to the mini-budget.

 

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You would think we were under a Labour Government instead of Conservative the way they have borrowed and bled the country dry and now the Bank of England is propping it up !

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