BIS Quarterly Review, March 2007

The Bank for International Settlements published its March 2007 Quarterly Review on Wednesday 14 March. The report said prices of risky assets rallied between end-November and late February as the outlook for economic growth appeared to improve, while implied volatilities remained near record lows.

"In this environment, yields rose in major government bond markets, and perceptions grew among investors that monetary policy might turn out to be tighter in the foreseeable future than previously

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