For example, yields on government bonds often function as a benchmark for measuring the long-term interest rates related to corporate loans, corporate bonds, mortgages, etc. Therefore, downward pressure on government bond yields is likely to contain funding costs, which may promote firms and households to increase their economic activities.
•  The Federal Reserve purchased longer-term Treasury securities at a pace of 45 billion U.S. dollars per month and agency mortgage-backed securities (MBSs) at a pace of 40 billion U.S. dollars per month until December 2013. From January 2014, the pace of its asset purchases will be reduced to 40 billion U.S. dollars and 35 billion U.S. dollars, respectively.