Sterling wholesale markets: developments in 1999

• Sterling wholesale markets grew by £800 billion in 1999, though much of this reflected increased market values rather than new issuance.
  
  
• Though the size of markets grew, liquidity in a number of core markets fell, reflecting both the retreat of risk capital following the global financial crisis of 1998 H2 and, in the gilt-edged market, reduced government borrowing and hence lower bond supply.
  
  
• The approach of the millennium date change also affected markets in 1999 H2, though liquidity and turnover in December turned out higher than many had expected.
  
  
• The Bank made two changes to its open market operations in 1999: a major permanent widening in the list of collateral eligible in OMOs; and, from October, the introduction of temporary three-month repos designed to help firms plan their liquidity over the year-end.

Sterling wholesale markets: developments in 1999