Effects of Government Interventions on Sovereign Bonds Pricing

This thesis investigates the effects of the European Central Bank’s monetary policy interventions, specifically its asset purchase programs, on sovereign bond yields in the Eurozone. While existing literature has explored this relationship, gaps remain in terms of comprehensiveness and methodology. Unlike previous studies that mostly focus on high- frequency data and short-term effects, this thesis provides findings on the longer-term effects of the European Central Bank’s asset purchases by employing Fixed and Random effects regressions on the broader time period, and analysing an exhaustive set of countries, thus allowing for more comprehensive results. The findings of this thesis have important implications for policymakers, as they provide valuable guidance for monetary policy formulation and for maintaining financial stability within the Eurozone.