The “Second Report on the Liquidity of the Secondary Market of the Italian Government Bonds- Year 2023” is now available online.
The Report, wich as a yearly cadence, is the result of a collaboration among the Public Debt Directorate of the Department of the Treasury, MTS Spa and MTS Spa and the CRIEP (Centro di Ricerca Universitario sull’Economia Pubblica) and analyses the trend in liquidity conditions in the inter-dealer market for Italian government bonds (MTS Italy) in 2023.
The paper, presented at the venue of Borsa Italiana in Milan before an audience of experts on the 21st of May, explores the different dimensions through which the micro-structural liquidity of the market may be assessed: on the one hand, the quoting activity and availability of market makers to offer competitive prices in the inter-dealer market to execute buy and sell orders of government bonds; on the other hand, the trading activity on the market platform.
The focus is on the micro-structural liquidity, that is measured according to established metrics based on existing scientific literature and market best practices. Moreover, we look also at the important technological evolution that has increasingly characterised the operations of intermediaries in the financial markets over the last few years.
A special section of this second Report looks at the repo market and its role for the liquidity of the cash market.
The second edition of the Report covers the year 2023.