Sovereign Risk, European Crisis Resolution Policies and Bond Yields

29 Pages Posted: 30 Nov 2015 Last revised: 4 Jun 2016

See all articles by Juha Kilponen

Juha Kilponen

Bank of Finland - Research

Helinä Laakkonen

Bank of Finland

Date Written: June 15, 2012


We study the effects of the ECB monetary policy and the European crises resolution policies on the 10 year sovereign bond yields of seven European countries. We find that some of the decisions have had significant impact on sovereign bond yields and have succeeded in reducing stress in the financial markets. However, the impact of the same policy decision might have been positive for some countries while negative for others, suggesting that contagion effects may be important. The economically most significant effects on the bond yields have been due to the announcement of ECB's Securities Market Programme.

Suggested Citation

Kilponen, Juha and Laakkonen, Helinä, Sovereign Risk, European Crisis Resolution Policies and Bond Yields (June 15, 2012). Bank of Finland Research Discussion Paper No. 22/2012, Available at SSRN:

Juha Kilponen (Contact Author)

Bank of Finland - Research ( email )

P.O. Box 160
FIN-00101 Helsinki
+358 10 831 2847 (Phone)
+358 10 831 2294 (Fax)


Helinä Laakkonen

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101

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