2012 was a year in which liquidity buoyed the equity markets across the globe. Very low yields on US bonds led to money flowing into US stocks and some of the liquidity spilled over into emerging markets. However, a high fiscal deficit and a wide current account deficit supported bond yields while the rupee depreciated a bit.
The financial markets in 2012
Here’s a look at how the financial markets performed through the year
10-year US bond yields declined during the year. The main reason was the quantitative easing by the US Federal Reserve. Photo: Hemant Mishra/Mint
Updated: Mon, Dec 31 2012. 01 09 AM IST