The Global Dash for Cash in March 2020

RePEc Short ID: pco241
ORCID iD: 0000-0001-6906-6241

Barone, Jordan; Chaboud, Alain P.; Copeland, Adam; Kavoussi, Cullen; Keane, Frank M.; Searls, Seth

Discussion Paper

The Global Dash for Cash in March 2020

Abstract: The economic disruptions associated with the COVID-19 pandemic sparked a global dash-for-cash as investors sold securities rapidly. This selling pressure occurred across advanced sovereign bond markets and caused a deterioration in market functioning, leading to a number of central bank actions. In this post, we highlight results from a recent paper in which we show that these disruptions occurred disproportionately in the U.S. Treasury market and offer explanations for why investors’ selling pressures were more pronounced and broad-based in this market than in other sovereign bond markets.

Keywords: sovereign bond markets; financial crisis; COVID-19;

JEL Classification: G1; E63; I1; G01;