As regards changes in market rates, particularly potential adjustments in long-term rates partly in response to a change in the monetary policy stance, I would say that the likely scenario would be one of an orderly adjustment, although the relationships between long-term and short-term rates are complex.
East Asia saw greater domestic bond issuance during the crisis, in contrast with lower international bond issuance and a reduction in the amount of syndicated loan origination (Chart 3). This result tells us how important it is to develop domestic bond markets to make the Asian financial system more robust.