The Bank’s purchases helped rebalance the lopsided trading flows in core debt markets, allowing buyers and sellers to set prices. Also, because securities dealers only have so much room for risk on their own balance sheets, our purchases helped free up dealers’ capacity to provide liquidity in these markets.
Short-term funding pressures To complement our extended repo operations, we started with programs designed to unfreeze markets that are key sources of short-term funding for businesses and governments. For example, to bolster the capacity of commercial banks to support businesses’ shortterm credit needs, we launched a facility to buy bankers’ acceptances.