Research Discussion Papers, Bank of Finland
No 22/2012:
Sovereign risk, European crisis resolution policies and bond yields
Juha Kilponen ()
, Helinä Laakkonen ()
and Jouko Vilmunen ()
Abstract: We study the effects of the ECB monetary policy and the
European crisis resolution policies on the 10 year sovereign bond yields of
seven European countries. We find that some of the decisions have had
significant impact on sovereign bond yields and have succeeded in reducing
stress in the financial markets. However, the impact of the same policy
decision might have been positive for some countries while negative for
others, suggesting that contagion effects may be important. The
economically most significant effects on the bond yields have been due to
the announcement of ECB's Securities Market Programme.
Keywords: bond markets; policy effects; liquidity; European sovereign debt crisis; monetary policy; (follow links to similar papers)
JEL-Codes: E42; F34; G15; (follow links to similar papers)
24 pages, June 15, 2012
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- This paper is published as:
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Kilponen, Juha, Helinä Laakkonen and Jouko Vilmunen, (2015), 'Sovereign risk, European crisis resolution policies and bond yields', International Journal of Central Banking, Vol. 11, March, No. 2, pages 285-323
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