Global liquidity growth has slowed sharply

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Global liquidity growth has slowed sharply

 

Global liquidity growth has slowed sharply. Collateral values are under renewed pressure and bond market volatility has jumped higher. The only positive is that the PBoC has started injecting funds into money markets, and at some pace. History shows that bad things happen when liquidity tightens. So far, global risk markets are holding up, but the risk of financial instability grows with every turn of the screw

 

 

 

 

See our latest published research, Weekly Global Liquidity Update 18th August 2023

 

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