The Bank for International Settlements in Basel reports that the first few months of 2000 were a period of heightened market volatility.
Regarded as the central bank of central banks, the BIS says that equity markets were the most volatile, particularly those trading technology stocks.
However, in its quarterly review, it adds that the volatility also extended to the fixed income markets and major currencies.
The BIS says one source of volatility seemed to be the uncertainty about how much United States and euro area monetary policy would tighten.
Commenting on the international banking market, the BIS says its most recent banking data show that international banks continued to invest heavily in international debt securities in the fourth quarter of 1999.
swissinfo with agencies