A return to domestic inflation

Matching eurozone country-specific inflation demand with supply has long been tricky for investment banks. While some dealers claim to have always looked to line up buyers and sellers on each trade, thereby running books that are more or less flat, big market-makers in domestic European inflation have traditionally only been able to offer liquidity across the country-specific inflation curves by retaining some risk on their balance sheets.

That is largely a function of the size of the markets. D