Specifically, the instruments we have employed since June 2014 are negative interest rates on the deposit facility, which provide the floor of the corridor; a reinforced form of forward guidance on the evolution of the interest rate corridor in the future; targeted longer-term refinancing operations (TLTROs); and the asset purchase programme (APP).
US Treasuries are the so called “risk free” assets, therefore, any rise in US Treasury yields is likely to push up yields elsewhere in the developed and developing world. Furthermore, most central banks are heavily invested in bond markets, which as we know are highly interest rate sensitive. While there has been some diversification of reserves across assets, this has been quite limited.