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

Economic Policy Review, 2023, vol. 29, issue 3, 29 pages

Abstract: In March 2020, the economic disruptions associated with the COVID-19 pandemic prompted a global dash for cash by investors. This selling pressure occurred across advanced-economy sovereign bond markets and caused a deterioration in market functioning, leading to central bank interventions. The authors 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, the authors assess differences in key drivers of the market disruptions across sovereign bond markets, based on an analysis of the data as well as 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)
Date: 2023
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Working Paper: The Global Dash for Cash: Why Sovereign Bond Market Functioning Varied across Jurisdictions in March 2020 (2022)
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DOI: 10.59576/epr.29.3.1-29

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