Bank of England insists emergency bond plan will end this week despite gilts sell-off

Cost of government borrowing hits highest level since 2008 crash

The Bank of England was forced to step in two weeks ago after the yield on gilts soared following Kwasi Kwarteng’s mini-budget (Kirsty O’Connor/PA) (PA)

The Bank of England says its emergency bond-buying scheme to calm markets will end Friday, even as the frantic gilts sell-off continued.

The cost of government borrowing over 10 years briefly surged to its highest level since 2008, as investors demanded higher returns.

It came as the FTSE100 closed at its lowest level in 18 months following grim news including figures from the Office for National Statistics (ONS) that show Britain’s economy unexpectedly shrank in August, putting the country even closer to recession.