5 Figure A.2 shows the response in daily changes in 10-year U.S. Treasury yields to changes in 10-year German bund yields around European Central Bank (ECB) monetary policy decisions since 2010. The significantly positive regression coefficient is evidence of substantial spillovers from ECB monetary policy to U.S. long-term yields. 6 See Rachel and Smith (2015) and Gagnon, Johannsen, and Lopez-Salido (2016).
Here, I would like to recognize that part of the challenge may be lying on the demand side of the equation. Therefore, initiatives such as the National Financial Literacy Program (NFLP) have been rolled out by the State Bank along with stakeholders to address the lack of financial literacy.