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cc-by-nc-nd, (c) Abad et al., 2013
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/57835

European Government Bond Markets and Monetary Policy Surprises: Returns, Volatility and Integration

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In this paper we investigate the response of bond markets to euro area and US monetary policy shocks. Specifically, we analyze the effect of unexpected changes in interest rates implemented by the European Central Bank -ECB- and the Federal Open Market Committee -FOMC- not only on the returns, but also on the volatility and the integration of European government bond markets. For all three characteristics our results show that the response to monetary policy surprises varies across groups of countries -EMU EU-15 central, EMU EU-15 peripheral, non-EMU EU-15 and non-EMU new EU-. We also find that the effects of monetary policy announcements on the level of integration are more pronounced than those on returns and volatility. Finally, our results paint a complex picture of the effects of monetary policy news releases on the level of integration. The effect of ECB monetary policy surprises differs across old and new European Union members, while the effect of FOMC monetary policy surprises differs across EMU and non-EMU members.

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ABAD, Pilar, CHULIÁ SOLER, Helena. European Government Bond Markets and Monetary Policy Surprises: Returns, Volatility and Integration. _IREA – Working Papers_. 2013. Vol.  IR13/25. [consulta: 20 de gener de 2026]. ISSN: 2014-1254. [Disponible a: https://hdl.handle.net/2445/57835]

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