Sterling wholesale markets: developments in 1999

Quarterly Bulletin 2000 Q1
Published on 01 March 2000
  • 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.

PDFSterling wholesale markets: developments in 1999

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