[SLIDE 7] Signalling and portfolio balance effects of a large scale asset purchase programme The signalling effect contributes to stronger anchoring of inflation expectations in line with our medium-term objective. This effect also contributes to reducing real rates further along the yield curve.
As for the yield spreads between private bonds (bank debentures and corporate bonds) and government bonds, while spreads between bonds with relatively high credit ratings and government bonds remain mostly unchanged, those between bonds with low credit ratings and government bonds seem to be expanding somewhat. Stock prices are recently starting to recover slightly.