The Bank of England announced today that it will intervene in the debt market, buying government bonds to "restore normal market conditions" at a time when UK interest rates are soaring.

"The bank will be making purchases of long-term government bonds" starting today, the Bank of England said in a statement quoted by the newspaper Económico, in which it specified that the "operation will be entirely funded by the Treasury."

In reaction, interest rates on 30-year debt, which had earlier in the session reached 1998 highs at 5.14%, retreated to 4.73%.