The share of bonds owned by entities that tend to hold securities until maturity, such as mutual funds and insurance companies, has increased in recent years, which would lead  1  These remarks represent my own views, which do not necessarily represent those of the Federal Reserve Board or the Federal Open Market Committee.
2  See Tobias Adrian, Michael Fleming, Jonathan Goldberg, Morgan Lewis, Fabio Natalucci, and Jason Wu (2013), “Dealer Balance Sheet Capacity and Market Liquidity during the 2013 Selloff in Fixed Income Markets,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, October 16). www.federalreserve.gov/econresdata/notes/feds-notes/2013/dealer-balance-sheet-capacity-andmarket-liquidity-during-the-2013-selloff-in-fixed-income-markets-20131016.html.