Says QE may have affected recent measures of liquidity
NY Fed's Dudley is speaking on liquidity conditions in the bond market. He does not make any comments on monetary policy or the state of the economy.
Some headlines:
- high-speed traders may add to temporary illiquidity.
- high-speed frequency trading may have curved trading profits.
- Clearer picture may only emerge as fed normalizes.
- Not much evidence of treasury market liquidity declining.
- Bond market liquidity risk may have increased
So although he says there is not signs of liquidity declining, there is risks that it might.
Markets will be on the lookout for any Q&A comments after his speech.
