But others may have grown accustomed to continuing asset purchases; the most recent program of quantitative easing, commonly referred to as QE3, had been first announced less than a year before and was proceeding at a steady pace of $ billion per month. The onset of the taper tantrum went well beyond a roiling of U.S. financial markets.
Spillovers to other advanced-economy financial markets included stock price declines, significant increases in sovereign yields, higher overnight interest swap rates in the United Kingdom and euro area, and rising credit spreads in some countries. Spillovers to EME asset markets were significantly stronger. Inflows to EME investment funds reversed sharply, EME currencies depreciated, and other asset prices declined. 16 II.