the bank of england said it would buy more government bonds to help keep its price stable and prevent investors from selling them which could put some pension funds at risk of collapse citing a material risk to financial stability after the turmoil hit pension firms the boe split its program to buy up to £10 billion of british gilts daily to include up to £5 billion of indexlinked bonds the market turmoil had forced pension funds to sell bonds due to concerns over their solvency threatening to create a downward spiral in bond prices as more were offloaded the central bank said tuesday that despite its earlier rescue efforts markets witnessed a further significant repricing of uk government debt particularly 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 it is the third time the bank has had to step in since the governments minibudget sparked alarm among investors the bank first stepped in on 28 september when investors began demanding higher interest rates on those bonds and government borrowing costs surged to worrying levels wall street journal reported that the bondbuying stabilized uk bond markets briefly but the selloff has resumed recently as the boes interventions scale has fallen consistently short of market expectations by friday the boe had pledged to buy up to £65 billion in longdated bonds as of monday it had purchased just over £5 billion