Second Report on the Liquidity of the Secondary Market of Italian Government Bonds, Year 2023

The “Second Report on the Liquidity of the Secondary Market of Italian Government Bonds - Year 2023" is now available online (see the report here).  

This annual Report is the result of the collaboration between the Italian Treasury Department – Public Debt Directorate MEF MTS, and CRIEP (University Research Center on Public Economics). It analyses the liquidity conditions in the inter-dealer market for Italian government securities (MTS Italy).

Presented on May 21st at the Borsa Italiana headquarters in Milan, with industry experts, the Report explores various dimensions for assessing market microstructural liquidity. This includes the quoting activity and the willingness of market makers to offer competitive prices for executing buy and sell orders of government securities, as well as the trading activity on the market platform.

The focus is primarily on microstructural liquidity, measured using established metrics based on scientific literature and market best practices. The Report also considers the technological advancements that have significantly impacted the operations of intermediaries in financial markets in recent years.

A special section of the Report examines the repo market and its role in the liquidity of the spot market.

The second edition of the Report covers the year 2023.