As regards interest rates, the increased demand for and lower supply of longer-term financing (relative to short-term financing) stemming from the introduction of the liquidity coverage ratio is expected to lead to a relative  3  As the previous narrow definition of liquid assets only included government bonds with a 0% risk weight in the Basel II standardised approach, a level 2 liquid asset category was introduced.
This includes both government bonds with a 20% risk weight in that approach, and covered and corporate bonds with an external rating of at least AA-. BIS Review 125/2010  3  increase of interest rates for maturities longer than the threshold established by the regulation (30 days) as compared with shorter maturities. This would imply a steeper money market yield curve.