Euro rates volatility wrong-foots dealers

Banks’ risk appetite and liquidity are low following painful rates vol moves, say traders


Dealers are struggling to navigate an increasingly volatile and gappy euro interest rate derivatives market, with uncertainty over the timetable for rate rises in the eurozone resulting in unexpected market moves that have led to bank losses and reduced risk appetite from market-makers.

“It’s a bit like moving from one crisis into another. I think the markets are now really, really stuck. You also see that liquidity is dropping dramatically because people are a little bit clueless on what the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here