02198cas a2200241 a 4500 AALejournalIMF007839 230101c9999 xx r poo 0 0eng d 50.00 USD 9781451942118 0258-7440 BD-DhAAL BD-DhAAL International Monetary Fund. World Economic and Financial Surveys : International Capital Markets 1994. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (145 pages) World Economic and Financial Surveys <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the origins of the recent turbulence in government bond markets in the major industrial countries, and considers whether the role of hedge funds in that episode argues for altering present regulatory arrangements. In financial markets, it is possible for such a revision of expectations-if it is shared by all market participants-to alter asset prices almost immediately; indeed, the change in asset prices can occur without any transactions even taking place. In this case, however, trading volumes soared along with the rise in bond yields, as a broad spectrum of market participants sought to undo large positions that had been built up under the projections of a continued rise of European and US bond prices and a strengthening of the dollar against the yen and some European currencies. Although the increase in bond yields was undeniably large for such a short time period, the markets did receive new information in February and March on economic performance-especially on growth rates-and on the likely future course of macroeconomic policies. Mode of access: Internet World Economic and Financial Surveys; World Economic and Financial Surveys ; No. 1994/004 Full text available on IMF http://elibrary.imf.org/view/books/083/14357-9781451942118-en/14357-9781451942118-en-book.xml IMF e-Library