In an effort to reassure investors, the Bank of England issued a fresh emergency action warning of a "material risk" to financial stability.
The Bank announced that it would increase its purchases of government bonds in an effort to calm the market.
It began its emergency plan after the mini-budget in September, which alarmed the markets and raised borrowing costs.
After the Bank said the program would expire this week, the cost of borrowing money from the government spiked once more on Monday.
Investors were unconvinced by the chancellor's decision to move his plan to balance the government's finances forward by three weeks.
In his mini-budget, the chancellor made tax cuts worth billions of pounds without outlining how he would pay for them.
Investor apprehension led to the pound falling to a record low, a rise in government borrowing costs, and the Bank of England being forced to intervene and take emergency measures after the jarring market swings put certain pension funds at risk of failing.
Since then, the government has come under intense pressure to alter course from the markets and its own MPs.
Therese Coffey, the deputy prime minister, told the BBC that she was "completely sure" that pensions were secure and noted that the Bank was independent of the government and working to stabilize the markets.
IFS Bank strengthens efforts to persuade investors that significant and severe budget cuts are necessary.
The Institute for Fiscal Studies, a think tank, said on Tuesday that when Mr. Kwarteng publishes his economic plan on October 31, he may need to make "large and severe cuts" of up to £60 billion to balance the books.
The Bank stated that there had been a "substantial repricing" of government bonds since the beginning of the week and cautioned there was a chance of further market slump.
It declared that in addition to continuing to acquire bonds as part of the initial emergency steps it started on September 28th, it would now purchase a wider variety of bonds.