The Bank of Italy has published a research note analysing the German and Italian government bond markets, focusing on market liquidity and the respective roles of banks and non-banks. The note examines holdings and market structure at a granular sectoral level and reviews trading activity across different types of market participants. It also considers the role of these participants and their resilience to shocks in the repo and futures markets, with the aim of improving understanding of government bond market dynamics, investor behaviour and liquidity for policymakers and market participants.
Bank of Italy 2025-01-31
Bank of Italy publishes research on liquidity and the role of banks and non-banks in German and Italian government bond markets
The Bank of Italy released a research note on the German and Italian government bond markets, analyzing market liquidity and the roles of banks and non-banks. The study reviews sectoral holdings, trading activity, and participant resilience in repo and futures markets to enhance understanding of bond market dynamics and liquidity.