Bank of England buys bonds at bid to prevent crisis from spreading

LONDON — The Bank of England said on Wednesday it would buy long-maturity UK government bonds “of whatever size is necessary” in an effort to restore market order after a series of government tax cuts causing borrowing costs to skyrocket.

The intense sell-off in UK government debt in recent days has ripped through seriously normal areas of financial markets. Pension funds and insurance companies holding UK debt-linked financial derivatives face the possibility of serious losses, according to analysts. Analysts say the BOE has stepped in to try to prevent losses from spiraling out of control.

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