the bank of england tuesday added inflationlinked government bonds to its program of bond purchases after a fresh attempt to extend support to pension funds failed to assuage worried investors in a statement the central bank said it would buy up to 5 billion pounds553 billion of indexlinked gilts each day through friday having monday doubled the total daily amount of bonds it could buy to gbp10 billion the central bank first launched its bond purchases on sep 28 in an effort to help pension funds that held large positions in derivativebased investments that were whipsawed by a furious selloff in uk government debt the central bank acknowledged that despite its efforts monday had seen a further significant repricing of uk government debt and in particular indexlinked gilts which protect investors against rising inflation dysfunction in this market and the prospect of selfreinforcing fire sale dynamics pose a material risk to uk financial stability the boe said asset managers who manage money for pensions monday said the boe should have targeted inflationlinked government bonds one of pensions biggest holdings and a market where it has become difficult to trade one asset manager said his firm pushed the boe to do so