Financial market developments

• Government bond prices in most major markets continued to fall during the third quarter, as stronger growth rates led to concerns about inflation and uncertainty over interest rate movements. There were also fears in many markets about a potentially heavy supply of debt.
• As in the second quarter, issuing activity in the international capital markets was at a subdued level because of market turbulence.
• Prices in most major equity markets remained weak; and the level of new issues continued to be low.

Financial market developments