Who buys bonds now? How markets deal with a smaller Eurosystem balance sheet
22 March 2024Federico Maria Ferrara, Tom Hudepohl, Pamina Karl, Tobias Linzert, Benoit Nguyen, Lia Vaz Cruz[1]The Eurosystem is shrinking its balance sheet, which makes more government bonds available for purchase. The ECB Blog looks at how markets are adjusting to this new situation with regard to bond price volatility, liquidity…