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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;

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File(s): File format is application/pdf https://libertystreeteconomics.newyorkfed.org/2022/07/the-global-dash-for-cash-in-march-2020/
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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2022-07-12

Number: 20220712