Global Money Markets Are Flashing Signals Liquidity Is Drying Up
A television station broadcasts Jerome Powell speaking after a Federal Open Market Committee meeting on the floor of the New York Stock Exchange in New York on Oct. 29.
Photographer: Michael Nagle/BloombergPockets of global money markets are coming under strain as central banks have been pulling back easy money policies just as governments are boosting debt issuance, luring cash away from the financial system.
Key gauges of secured borrowing have risen in the US and UK, reaching levels not seen in years. While the drivers in each case may differ, the signs of tighter liquidity are flashing across markets.