A large portion of securities investment from China went to U.S. Treasuries and agency debt markets (Chart 7),3 contributing to the decline not only in interest rates but also in their volatility (Chart 8). The sustained volatility decline after 2004 was remarkable, and likely contributed to the perception of declining risk, thereby encouraging the risk taking that turned out to be excessive after all.
4 / 10  BIS central bankers' speeches  In September 2017, the ECB, the Belgian Financial Services and Markets Authority (as lead supervisor of both EONIA and EURIBOR), the European Securities and Markets Authority and the European Commission launched a new private sector working group.