Bank of England expands efforts to stabilize bond market

LONDON (AP) — The Bank of England is expanding its efforts to stabilize the bond market to include inflation-linked bonds amid continuing concerns about the government’s budget. The bank said Tuesday it will now purchase up to 10 billion pounds ($11 billion) of long-term bonds a day, including 5 billion pounds of conventional bonds and 5 billion pounds of index-linked bonds. The intervention will still end on Friday as originally planned. 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 pounds of unfunded tax cuts.