The global bond markets, which handle hundreds of billions of trades every day,
Hundreds of billions in nominal value, yes, but not hundreds of billions of trades. Not even HFT is causing that….HFT not being as large a part of bond markets as it is in equities anyway.
But then The Guardian really falls off the edge:
At the outset of the Covid-19 outbreak, bond markets froze as investors panic bought highly rated government bonds and the number of sellers shrank.
The US Federal Reserve, the Bank of England, the Bank of Japan and the European Central bank, which oversee the largest debt markets, stepped in to expand the number of bonds on offer and promised to meet demand while the crisis continued.
Demand has been supported by the Bank of England’s pledge to “create” £200bn of electronic funds to purchase more bonds as part of its quantitative easing programme, adding to the £435bn of assets on its balance sheet.
Increasing the supply of bonds by offering more for sale is entirely sensible here. But it’s hardly “supporting” demand, is it? It’s meeting it.