Such spillover effects are associated with portfolio rebalancing, which is one of the channels through which the asset purchase programme reaches the real economy: our purchases reduce returns on safer assets. This encourages investors to shift to riskier, higher yielding assets.
Pension funds, banks and other market participants that we buy securities from are likely to substitute these for other long-term assets, thereby eventually pushing up prices more broadly. We are aware that our measures may entail some financial stability risks. But currently these risks are contained. And should they emerge, macroprudential policy is best suited to address them.