Why are bond investors deaf to the chief of the central bank when he asks them to be co-operative and not combative and that investors should trust the central bank to walk the talk?
Read more about Won t pull out liquidity : RBI tries to calm bond market nerves on Business Standard. Central bank governor welcomes blockchain tech, but voices major concerns on cryptocurrency
Risk.net
Stay of execution, RFR illiquidity and fallback reliance slow SOFR adoption Print this page
The derivatives market’s transition to the secured overnight financing rate (SOFR) has stalled since regulators granted US dollar Libor an 18-month reprieve, with traders blaming poor liquidity and the industry’s reliance on new fallback language for a dearth of new swaps linked to the successor rate since November.
Five of the most heavily used US dollar Libor fixings will survive until mid-2023, but regulators have insisted that no new Libor risk should be traded after the end of 2021, when
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Chris Wattie/Reuters
Signs that inflation is making a comeback are unsettling big investors.
Past periods of high inflation have weighed heavily on real returns from stocks and bonds, which have flourished over the past decade when inflationary pressures have generally remained muted.
But inflation forecasts are now rising following massive increases in government spending and the torrent of liquidity unleashed by central banks in response to the COVID-19 pandemic.
By Joanna Ossinger
The rally in Bitcoin that took the digital token to a fresh peak over the weekend could face a test from declining liquidity in the market for the largest cryptocurrency.
Bitcoin rose as high as $58,350 on Sunday before retreating to about $56,200 as of 2:30 p.m. in Tokyo on Monday. The token has roughly tripled in the past three months but its liquidity has deteriorated, according to Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase & Co.
“Market liquidity is currently much lower for Bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact,” he wrote in a note on Friday.