Developments in financial markets over the month had largely reflected news emanating from the United States, including the FOMC’s decision at its September meeting not to reduce the pace of its asset purchases, and political negotiations about the fiscal position. Although the US government shutdown and concerns over the debt ceiling had appeared to have only limited effects on broader financial markets, credit default swap premia on US government debt had increased and yields on US Treasury bills maturing in late October had risen to nearly 30 basis points, from around 2 basis points at the end of September. 3 ... (full story)