Business surveys continue to be favourable overall, but there are signs that the trade tensions could lead to a revision of investment plans. This is also why a deterioration of funding conditions in the economy stemming from higher interest rates on public debt must be avoided.
Ricardo Caballero has also written on this topic; see Caballero R (2013), “The Shortage of Safe Assets: Macroeconomic Policy Implications”, presentation at the Bank of England, May, available at <http://www.bankofengland.co.uk/ research/Documents/ccbs/cew2013/presentation_caballero.pdf>. 2  BIS central bankers’ speeches  Australian Government Bond Market Yields on Australian Government bonds have been affected by these international factors over recent months as well as some domestic influences.