The commencement of the ECB’s Public Sector Purchase Programme had been a significant event in financial markets during the month, although asset prices had also reacted to a range of domestic and overseas data and policy announcements. Market contacts indicated that many were still digesting the details of the ECB’s programme that had been announced on 5 March. In particular, contacts suggested that the Governing Council’s decision not to purchase debt at yields below the ECB’s deposit rate would skew purchases more towards longer-maturity debt than initially expected. Long-term interest rates had fallen in a number ... (full story)