Or perceptions of reduced policy space, in particular for conventional policy instruments, may have led investors to expect less forceful changes in yields for any given macroeconomic impulse. This is indeed what we have been seeing for negative news shocks.
However, the peso has depreciated less than the currencies of many other emerging economies, and markets have been orderly, operating with more than sufficient liquidity. Risks of new bouts of volatility remain. Further pressure on emerging-market asset prices could occur.