Covid-19 stimulus tames EM bond yields
The analysis finds that quantitative easing announcements brought down yields of benchmark government securities much more in emerging markets than developed ones
MUMBAI : Quantitative easing (QE) measures, or long-term asset purchases, were heavily used by central banks as a stimulus measure after the financial crisis of 2008. Covid-19 has prompted central banks to take similar decisions again. But a new study points out that the reaction of bond markets to such steps has been starkly different in developed and emerging economies.