The Bank of England on Tuesday expanded its efforts to stabilize the bond market to include inflation-linked bonds amid continuing concerns about the government’s budget.
The purchases were broadened to include index-linked bonds after yields on government bonds jumped again on Monday, returning to the levels reached immediately after the government on Sept. 23 announced £45-billion of unfunded tax cuts. Bond yields tend to rise as risk increases because they represent the annual return investors demand to loan money to the government.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: