Since the
bond market's «flash crash» back in October — when US 10 - year Treasury yields fell 34 basis points, or 0.34 % in one morning —
concerns regarding
liquidity and how resilient the
bond market might be to shocks have lingered around the
market.
Although it is fair to say that the recent uptick in volatility has in part reduced earlier
concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus on the resilience of
liquidity, particularly in
markets, such as the
market for corporate
bonds, that may be prone to gapping between
liquidity demand and supply in stressed conditions.
Here, we take a look at the more recent June «
Bond Market Group» minutes; the main concern was that, despite a functioning JGB market, there has been a notable increase in bid - ask spreads and general decrease in liquidity since the start of aggressive «QQE» last Oc
Market Group» minutes; the main
concern was that, despite a functioning JGB
market, there has been a notable increase in bid - ask spreads and general decrease in liquidity since the start of aggressive «QQE» last Oc
market, there has been a notable increase in bid - ask spreads and general decrease in
liquidity since the start of aggressive «QQE» last October.