Bank of England steps in again to calm markets

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The Bank of England had to increase its bond-buying scheme for a second day in a row.

A sell-off of government bonds was amaterial risk to financial stability.

The Bank plans to buy a wider range of bonds.

After the Bank increased the amount of bonds it was buying, the cost of government borrowing went up.

The Bank hopes its latest move will keep the debt market from collapsing.

Since the beginning of the week, it has seen a significant repricing of government bonds.

"Dysfunction in this market and the prospect of self-reinforcing "fire sale" dynamics pose a material risk to UK financial stability," it warned.

The Bank doubled the amount of bonds it would buy after the chancellor brought forward his plan to balance the government's finances.