Chart 3 shows that the decline in the GDP-weighted average sovereign yield has been substantial. The reduced dispersion in sovereign bond yields is also due to the profound change in the European fiscal landscape, as reflected in the far-reaching agreement at the July European Council meeting.
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.