However, the behaviour of interest rates on lats interbank market transactions of longer maturity (over six months) – they continue to drop, reaching historical lows – confirm that the tightening of liquidity conditions is only temporary.
There are three developments which increase the German bond markets’ attractiveness for both issuers and investors: ·  a higher turnover and therefore increased liquidity,  BIS Review 98/2001  3  ·  many new issuances and therefore more opportunities to diversify, and  ·  a wider range of products, and therefore more chances to satisfy the needs of investors.