Bonds
The ECB’s collateral conundrum
A lack of high-quality collateral in the eurozone has resulted in money market rates lagging ECB policy rates, hampering monetary policy transmission
Gilts debacle exposes financial stability risks
Lurking leverage in liability-driven UK pension investments raises important questions for central bankers
Banknotes: October to December 2022
A round-up of news and salient issues that have affected central bankers in the past three months
BoE not briefed on disastrous ‘mini-budget’, Bailey says
Governor says absence of independent assessment of tax package made it very hard to assess
Bank of Canada posts first quarterly loss in its history
“We do not make policy to maximise our income,” says Macklem
BoE begins unwinding gilt market intervention
Use of “reverse enquiry window” designed to limit market impact from £19 billion sales
Book notes: Zero interest rate policy and the new abnormal, by Michael Beenstock
Author's contention that asset purchases caused the low neutral rate of interest is entertaining and infuriating in equal measure
Riksbank slows down normalisation with 75bp rise
Ingves chairs last policy decision as Riksbank predicts higher inflation and lower growth
PBoC eases rules to lure foreign bond investors
New rules include allowing foreign investors to conduct FX trades with more financial institutions
ECB eases securities lending limits to address collateral shortage
Governing council aims to provide “backstop for the euro area repo markets”
PBoC increases aid for troubled real estate sector
Latest measure expands bond scheme to $34.5 billion and offers developers help with debt issuance
Greener energy mix would foster price stability, says Lagarde
More use of renewables would reduce chance of energy price spikes
Lagarde says ECB may need to tighten above neutral rate
ECB president confirms central bank will announce QT plans in December
Central banks’ gold demand hits record level
Purchases in 2022 reach 673 tonnes, higher than in any full year since 1967
Bank of England rate hike is largest in over 30 years
MPC forecasts prolonged downturn and says it does not foresee rates rising to 5.25%
Nigeria floats conversion of central bank loans to debt amid growing crisis
Government official says central bank has loaned government $46 billion as bond yields rise
SNB withdraws record sum from Fed’s swap line
Swiss central bank taps $11 billion but reasons for its operations are unclear
Is the ECB taking the right policy path?
Facing an energy supply shock, analysts ponder whether sharp rate increases and QT alone will serve to bring inflation back to target while avoiding a major recession
Major bond markets ‘more prone to liquidity imbalances’, says FSB
More use of debt in investment strategies has combined with reduced dealer capacity, report finds
‘Shouting on the phone’: BoE officials shed light on gilt market intervention
Crisis sparked by UK government’s plans needed unprecedented action, officials tell parliament
Japan to conduct unscheduled bond-buying operations
BoJ announcement comes as yen nears 32-year low against the dollar
DNB advises pension funds to boost liquidity – report
Following UK crisis, Dutch central bank asks funds to monitor stress signals and review liquidity rules
Bank of England to go ahead with QT
Central bank delays start of bond sales by one day to avoid fiscal announcement