Ann: Extension of SPP CLosing Date, page-114

Exactly right.

I experienced the risk-averse herd-like mentality of institutions first hand several years ago in a meeting with representatives of various financial institutions (I was just sitting in so didn't participate).

After hearing all the doom and gloom talk around the table, one bloke spoke up and said 'But this recent reversal in the bond market is just a blip, surely?And we all think the fundamentals (eg. low inflation) will reassert themselves, right?'.

The silence after he spoke was deafening. But he was spot on.