



The findings echo the conclusion of earlier research by the Federal Reserve Bank of New York. If anything, the market appears to have become more liquid in recent years. For example: On the basis of a series of widely accepted liquidity measures, we document that there is no evidence that liquidity outcomes have deteriorated in the market, despite the decline in inventory of dealers in this period. In a research note out last week, Matteo Aquilina and Felix Suntheim in the chief economist’s department of the Financial Conduct Authority in the UK said there's nothing to worry about. Account icon An icon in the shape of a person's head and shoulders.
