Markets Wrestle With Reflation Prospects: BIS Quarterly Review
Markets Wrestle With Reflation Prospects: BIS Quarterly Review Date 01/03/2021 Prospects of a more robust economic recovery buoyed risky asset prices, with signs of exuberance reflected in the behaviour of retail investors. Sovereign yield curves steepened as investors priced in higher inflation and fiscal support. Sentiment towards emerging market assets remained favourable, in particular in East Asia. The latest BIS Quarterly Review reports that risky assets strengthened further during the review period.1 This buoyancy was set against a backdrop of continued strong monetary accommod...