Bonds
BoE’s Woods rejects call to exempt gilts from leverage rule
Bank capital regime must account for sovereign bonds’ interest rate risks, PRA chief says
Economists divided on impact of yuan internationalisation efforts
Experts offer mixed views on measures including renminbi bonds, repos and HKMA facilities
Lagarde revives pitch for euro’s international role
Single currency can become ‘true source of strength’, ECB president says
Local bond markets seeing more domestic investors, IMF says
But EMDEs must be mindful of growing sovereign-bank nexus as foreign investors depart, latest GFSR chapter notes
Book notes: Crisis cycle, by John H Cochrane, Luis Garicano and Klaus Masuch
This book ought to be read by anyone with an interest in or influence on the future development of the Emu
Merz backs using Bank of Russia funds to help Ukraine
Frozen central bank assets could collateralise €140bn interest-free loan, says German chancellor
Riksbank cuts rates, teases end to QT in December
Swedish central bank says uptick in inflation is transitory
BoJ holds policy as expected and plans to sell ETF and J-Reit assets
Two board members vote for hike, but all agree on sales that economists say will help normalise policy
Stablecoins pose bigger risks to US than to EU – de Guindos
ECB vice-president also expresses hope that “populist movements in Europe do not prevail”
Political turmoil rattles Turkish lira carry trade
Echoes of March crackdown that sparked market rout leave traders on alert
BIS warns of elevated equity prices amid ‘sanguine’ markets
High stock valuations “sit oddly” with fiscal sustainability concerns, according to quarterly review
Bank of Burundi to overhaul country’s market operations
Central bank teams with LSEG to upgrade east African country's financial market infrastructure
Fiscal expansion raises concerns for BI’s independence
Central bank says it will align policy to reduce cost of government spending programmes
Ireland no longer approving Israel bond prospectuses in EU
Luxembourg takes over following campaign by Irish civil society groups
BoJ deputy governor says policy should be tightened further
Ryozo Himino says real interest rate remains low, despite three hikes since last year
How much do investors really care about Fed independence?
The answer for some is more nuanced than you might think
Yield spreads of bonds held by mutual funds decline in QE – ECB paper
Bond purchase programmes compress risk premia and boost demand, research finds
Aging population may improve fiscal sustainability – paper
More old people means more money to invest in assets like government bonds, researchers point out
Fed’s new leverage ratio: the horse that never left the gate
Most of the biggest dealers aren’t leverage constrained now, and experts are sceptical that banks will use the extra capacity for Treasuries
Bessent expects BoJ to raise policy rate
US Treasury secretary also says inflation in Japan is dragging up yields on long-term US bonds
Climate risks still on the fringe of monetary policy in Asia
Notwithstanding efforts by the PBoC and BoJ, there is still a need to observe persistent and measurable impacts on inflation and output before climate change truly influences interest rate policy, argues Sayuri Shirai
Investment funds procyclical to bond markets – ECB blog
Vehicles sell sovereign debt in times of stress while other investors step in to buy it
Tariffs only partly explain April’s volatility – BIS paper
Movements in dollar and Treasury term spread driven by other factors, authors say
Is this time different for Argentina?
Reserve shortage and overvalued currency cast a pall over an otherwise successful stabilisation campaign