For the third week in a row there was no public corporate bond issuance in the domestic debt capital market. The volatility in global financial markets that is the cause of this lack of issuance activity looks set to continue for a while yet.June could become the first month in which no public issuance occurs since May 2010. May 2010 was the time of the first Greek default, although it was called a bail-out at the time.It is already five weeks since a major bank - NAB - tapped the public bond markets. Bank of Queensland was the last bank to do so, in the last week of May. The only other month in recent years in which there has been no public corporate bond issuance was September 2008 - the month in which Lehman Brothers collapsed, triggering the onset of the GFC in earnest.However, June 2013 is unlikely to mark another financial or economic crisis. Instead, this period of heightened volatility should mark the long awaited recovery.The first-order event of the second half of last week was the US Federal Reserve's comments that it plans to start unwinding quantitative easing soon. The second-order event, affecting financial markets in Australasia and our region generally, was the latest Chinese PMI (Purchasing Managers' Index) numbers, which remain under 50 for the second month in a row, and, thereby, indicate a recession.The third-order event was the emerging liquidity crisis in the Chinese financial system. The People's Bank of China controls monetary system liquidity and has been happy to oversee a blow-out in repo rates.It is argued that this is intended to pressure Chinese commercial banks into reigning back lending for speculative property development and to focus on lending to the productive sectors of the economy. Everyone is hoping that the PBOC gets this process right and doesn't send Chinese banks to the wall.