SOGEI website background

The euro area sovereign debt markets in the crisis: role and impact on financial stability perspectives

The euro area sovereign debt markets in the crisis: role and impact on financial stability perspectives

The demand and supply environment in which European sovereign debt markets operate has changed over the last years and is still changing: (i) Firstly, liquidity in the financial system has increased, both in terms of excess reserves held by commercial banks and deposits held by the non-financial sector, notably corporates, whose considerable increase in gross debt has so far largely been offset by a similar rise of liquid assets on aggregate; […]