Credit Suisse no longer wants to act as a market maker for European government bonds, the bank said.
'This is part of scaling back the macro business', said Adam Bradbery, a London-based spokesman for Credit Suisse. 'We are in the process of exiting all our European primary dealer roles'.
Bloomberg News reports that it will remain a primary dealer for U.S. government debt.
Credit Suisse will withdraw from the U.K primary-dealer market on Friday, the nation’s Debt Management Office said. It’s the first time a gilt primary dealer - which buys sovereign debt directly from the government - walked away since December 2011, when State Street Corp.’s European division withdrew.
'This is a dramatic move for Credit Suisse, and a step back for bond-market liquidity', said Christopher Wheeler, an analyst at Atlantic Equities LLP in London.