There have always been people who believe in Father Christmas and who think that everything will continue as it is. Those who don’t prepare themselves for increases in interest rates will ultimately be at a disadvantage. Even changes in the purchase programmes will affect the yield curve. But it’s not the ECB’s task to guarantee that the curve will always remain so flat.
And if market participants come to doubt these prices – or their reliance on these prices proves fleeting – risk premiums across asset classes and geographies could move unexpectedly.