While I think this is due in part to the "stock effect" attributable to the past JGB purchases, another reason seems to be that the "announcement effect," or the effect of the Bank having announced that it will purchase an unlimited amount of JGBs through fixed-rate purchase operations if 10-year JGB yields exceed 0.25 percent, has had a significant influence on the formation of market participants' expectations.
Throughout the global financial crisis, Canada’s financial system showed its strength and resilience. Nonetheless, an important lesson from the non-bank ABCP episode in particular and the global crisis more generally is that our financial system is not immune to vulnerabilities in market-based financing.