Equiza, Juan; Gimeno, Ricardo; Moreno, Antonio; Thomas, …
life of term bonds in order to understand the yield curve effect of central banks’ government bond purchases. Motivated by … structure model. We find that an asset purchase shock equivalent to 10% of euro area GDP lowers the 10-year average yield of the …-free (OIS) yield curve, the same shock lowers the 10-year rate and term premium by 35 and 26 bp, respectively. …