The asymmetry of prospective rate moves in different parts of the curve with short rates at the zero lower bound, explicit forward guidance about future policy decisions and
massive asset purchase programs may result in a higher likelihood of one - sided markets, which may in turn impair liquidity, or at least lead one to conclude from liquidity indicators that markets have become more illiquid.
The last one here should come as no surprise given central banks have anchored short - term interest rates at zero and long - term rates continue to be suppressed by
massive asset -
purchase programs and the generally sluggish nature of the global recovery.