The Global Dash for Cash: Why Sovereign Bond Market Functioning Varied across Jurisdictions in March 2020

Jordan Barone, Alain P. Chaboud, Adam Copeland, Cullen Kavoussi, Frank M. Keane and Seth Searls
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Alain P. Chaboud: https://www.federalreserve.gov/econres/alain-chaboud.htm

No 1010, Staff Reports from Federal Reserve Bank of New York

Abstract: As the economic disruptions associated with the COVID-19 pandemic increased in March 2020, there was a global dash-for-cash by investors. This selling pressure occurred across advanced sovereign bond markets and caused a deterioration in market functioning, leading to central bank interventions. We show that these market disruptions occurred disproportionately in the U.S. Treasury market and were due to investors’ selling pressures being far more pronounced and broad-based. Furthermore, we assess differences in key drivers of the market disruptions across sovereign bond markets, based on an analysis of the data as well as structured outreach to a range of market participants.

Keywords: sovereign bond markets; financial crisis; COVID-19 (search for similar items in EconPapers)
JEL-codes: E44 G01 G12 H63 (search for similar items in EconPapers)
Pages: 26
Date: 2022-03-01
New Economics Papers: this item is included in nep-ban, nep-fmk, nep-mac and nep-mon
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Citations: View citations in EconPapers (3)

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Journal Article: The Global Dash for Cash: Why Sovereign Bond Market Functioning Varied across Jurisdictions in March 2020 (2023)
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