LONDON (Reuters) - A key indicator for British companies' cost of borrowing on markets fell to a record low after the Bank of England unveiled a new corporate bond-buying scheme on Thursday as part of a broader economic stimulus plan.
The yield on data provider Markit's sterling-denominated corporate IBOXX index -- which comprises 680 investment-grade bonds -- closed at a record low of 2.53 percent on Thursday from 2.76 percent the previous day, it said in an email on Friday.
The premium companies would pay over British government borrowing costs fell to 154 basis points from 162 bps, the lowest of the year and just 24 bps from a record low hit in March 2015.
The BOE launched a scheme to buy 10 billion pounds of high-grade corporate debt, alongside an interest rate cut and government bond-purchases aimed at heading off any economic fallout from Britain's June vote to leave the EU.