Since the UK treasury has already issued the bonds at a fixed rate, why do they care what the secondary aftermarket price of their bonds is? As I think you fig

Since the UK treasury has already issued the bonds at a fixed rate, why do they care what the secondary aftermarket price of their bonds is? As I think you figured out for yourself, it affects the interest rate that they have to pay on new issues. Even when the budget is balanced (HA!), they are still constantly issuing new bonds to pay off maturing ones. How does propping up the bond market reduce the risk of the impending recession or help the UK treasury pay off its debt obligations? Buying bonds puts more cash into circulation which can (at least in theory) act as an economic stimulus. Of course, it also increases the risk of price inflation.