For example, the major realignments of global FX reserve portfolios in the summer of last year passed without a significant increase in euro area yields or yield volatility. In this sense, the presence of PSPP has aided market functioning by providing a constant source of demand in the market and by flexibly directing this demand towards particularly oversold securities.
Moreover, the Bank further enhanced the program by introducing a new framework for enabling financial institutions that do not have a current account at the Bank to use the Growth-Supporting Funding Facility and the Stimulating Bank Lending Facility through their central organizations.