Their movements are affected by other fundamental forces, and what we pay in Sackville compared with what we pay in Bangor is the end result of many competing pressures. This is not to say that markets are perfect or that there is no room for improvement.
Until recently, many emerging-market countries simply did not have a yield curve because there was effectively no market for debt issued in domestic currency beyond a very short horizon. The credibility of central banks has been crucial to this deepening of the domestic capital market, which is typically associated with higher economic growth.