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Euro Yield Curve Fluctuations: Market Fluctuation and Forecast

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Added on  2019-09-26

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This article explains the Euro yield curve for Government bonds and its impact on monetary policy formulation by the ECB. It covers the dynamic term structure model and the most important monetary policies adopted by the ECB. The article also discusses the ECB's measures to maintain price stability and control the yield curves for short to medium terms.

Euro Yield Curve Fluctuations: Market Fluctuation and Forecast

   Added on 2019-09-26

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Market fluctuation and forecast1Market Fluctuation and forecast
Euro Yield Curve Fluctuations: Market Fluctuation and Forecast_1
2Euro Yield Curve Fluctuations The yield curve represents the relationship between market interest rates and the remaining time of debt securities. The ECB publishes about 19 different yield curves. The Euro yield curve showing comparative data between 2006 -2016 as extracted from ECB site has been given below
Euro Yield Curve Fluctuations: Market Fluctuation and Forecast_2
3Short term interest rates from 2006 to 2016 is presented by the following chartAs seen by the above two curves, we find that the average yields in 2016 were significantly compared to 2011 average yields. Bond yields have declined gradually from about 4.34% in 2011 to nearly 1.11% in 2016.The interest rates used by the banks to trade their surplus or deficit funds is known as the money market rate. These rates were in peak during 2007-2008 but with the global economic and financial crisis, these rates fell steeply from 2009. Since then the money market rates have
Euro Yield Curve Fluctuations: Market Fluctuation and Forecast_3

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