This market is also important for an effective transmission mechanism for monetary policy and facilitating the introduction and pricing of hedging products and serve as benchmarks for other debt instruments. Efforts towards development of the Government securities market have focused on three areas: institutional measures, innovations through instruments, and enabling market development measures.
Using a gross income concept leads to lower levels of DTI or DSTI than using a net income concept. Another example is that valuation methodologies for RRE and CRE are not aligned, with Germany and Austria using a long-term sustainable value concept and others using true market value. Developments in valuations across countries are therefore not comparable.