Unconventional Monetary Policy and Auction Cycles of Eurozone Sovereign Debt

We provide evidence that the European Central Bank (ECB's) unconventional monetary policy dampens yield cycles in secondary markets for Eurozone sovereign debt around new auctions. This dampening effect tends to be larger when market volatility is higher. Cycles caused by domestic auctions and role of are largest countries with low credit ratings. Auctions these also generate significant auction other countries. Such can have a nonnegligible on debt-servicing costs, but limited through central bank purchases turbulent periods, issuance tranquil coordination national calendars.