The Riksbank’s Financial Markets Survey: Fixed income and foreign exchange markets functioning better
News The Swedish fixed income and foreign exchange markets have improved since the spring. This is according to market participants who responded to the Riksbank’s Financial Markets Survey conducted in September and October.
Respondents in the Swedish fixed income market have a less pessimistic view of market functioning and liquidity. Several mention that the Riksbank's sales of government bonds have improved liquidity in the market.
In the foreign exchange market, a majority of the respondents think that the Swedish krona market is functioning well, compared with last spring when just under half gave this response.
Most financial market participants consider themselves to be taking neutral or low risks, which is reported to be due to geopolitical uncertainty as well as risks linked to inflation and higher interest rates.
FINANCIAL MARKETS SURVEY
Twice per year, the Riksbank sends out a Financial Markets Survey to participants active in the Swedish foreign exchange and fixed income markets. The purpose of the survey is to gain an overall picture of participants’ views on the Swedish financial markets – how they are working, what market activity looks like and the size of the risks they take. This report presents the results of the survey responded to in the period 21 September to 9 October 2023.