This can be a welcome and intended outcome of monetary policy accommodation as it may help to ease financing conditions for non-financial corporations. But this trend also has a flip side, as it contributes to rising risks and vulnerabilities in non-banks’ balance sheets, with potential negative repercussions for the stability of the whole financial system.
Chart 3 Euro area sovereign yields (cumulated changes since 1 February 2020, percentage points)  Sources: Bloomberg and ECB calculations. Note: The latest observations are for 21 August 2020. The stabilisation of markets is also visible in the balance of payments data as shown in Chart 4.