This is especially the case for German Bunds, which is of particular importance for the euro area as Bund prices effectively determine the quasi-risk free curve in the euro area. According to our estimates, less than 10% of the outstanding stock of German Bunds might currently be in the hands of private investors.
But this estimate needs to be treated with caution as it relies on a number of assumptions regarding the allocation of overseas foreign exchange reserves. As my next slide shows, the drop in the free float has had a significant impact on price dynamics.