Moody's: Portugal and Ireland saw the largest impact from ECB asset purchases

"The European Central Bank's (ECB) asset purchases are estimated to have lowered 10-year euro area bond yields by between 50 and 150 basis points (bps) across major euro area countries, with Portugal and Ireland having seen the largest impact," Moody's Investors Service wrote in a recent report.

Key quotes

The impact of ECB purchases on government bonds yields for euro area peripheral countries has been around 50 basis points greater, on average, than for core countries.

The research found considerable variation across countries, with estimates ranging from 50-150bps.

Portugal and Ireland saw the largest impact, suggesting that ECB purchases have had both a quantitative easing (QE) and credit easing impact.

The report's findings suggest that there will be significant increases in long-term benchmark government bond yields as asset purchase programmes in Europe peak and the stock of purchases eventually declines.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS