The Bank of Mongolia cuts its medium-term inflation target to 5% from 6% and asks parliament to recapitalise it, moving the cost of its mortgage and price-stabilisation programmes onto the sovereign balance sheet.

Central banks are moving risk onto sovereign balance sheets rather than absorbing it themselves. Mongolia's recapitalisation request and the Bank of Russia's addition of exchange-traded corporate and mortgage bonds to its Lombard List are the same mechanism: the central bank's balance sheet is being made whole by the state, or by the collateral of the issuers it is asked to support. The Deutschlandfonds is the mirror image, with €30bn of federal funds and guarantees mobilising €130bn of private investment and the raw materials arm already committing to lithium and rare earths projects. Lane's AI-driven rise in long-term rates and Nagel's gold-share argument describe the other side of that transfer: sovereign debt rising while reserve portfolios diversify away from euro-denominated assets. The RBI's overnight drain and the Bank of Korea's silent reserves release both leave the market without a clean read on how much liquidity the authorities are willing to withdraw.