LONDON (Reuters) - Evidence is too mixed for regulators to intervene with new rules to improve liquidity in bond markets, a senior Bank of Ireland (I:BKIR) official said on Tuesday.
Policymakers have been scrutinising the ability of bond markets to absorb heavy selling in times stressed times as they react to changes in interest rates.
Banks have blamed tougher regulation since the financial crisis on making it less profitable to offer markets in bonds to investors at all times.
Martin Moloney, head of markets policy at the Bank of Ireland, said that bid-offer spreads showed there was no problem with liquidity, while a fall in inventories of bonds at banks pointed to a potential problem.
"You can't draw any conclusions about market liquidity that leads us to conclude that we need to do something," Moloney told an asset management conference in London.