The Riksbank’s Financial Markets Survey: Fixed income and foreign exchange markets functioning somewhat better
News The Swedish fixed income and foreign exchange markets are functioning somewhat better today than last autumn. This is according to the fixed income and foreign exchange traders who responded to the Riksbank’s Financial Markets Survey conducted in March.
As in previous surveys, the Swedish fixed income market is still reported to be functioning poorly, which is believed to be due to poor liquidity, few market participants, the Riksbank's previous asset purchases and a low willingness and ability to take risks among market makers. However, compared with last autumn, fewer respondents today consider the fixed income market to function very poorly.
The situation is also somewhat more positive for the foreign exchange markets. For example, more respondents state that market liquidity is good, especially in the futures market.
Financial market participants are now taking less risk compared to last autumn, which is reported to be due to high volatility, poor liquidity and uncertain future prospects.
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 7–28 March 2023. This time the survey had 54 respondents. The report is based solely on participants’ responses and is not an account of the Riksbank’s assessments.