International Monetary Policy Spillovers based on Government Bond Yield Dynamics: Evidence from G7 Countries and China

DOI

10.2991/978-94-6239-787-3_88How to use a DOI?

Keywords

Monetary policy spillovers; Government bond yields; VAR model; Granger causality

Abstract

This paper investigates the international transmission of monetary policy shocks using daily changes in 10-year government bond yields for the G7 economies and China from 2015 to 2025. A Vector Autoregression (VAR) model combined with Granger causality tests is employed to examine dynamic interdependencies among global bond markets. The empirical results show clear cross-country spillover effects, although domestic factors remain the dominant driver of bond yield movements. The United States plays a central role as the primary source of global monetary policy spillovers, exerting strong influence on economies such as the United Kingdom, Japan, and China. In contrast, China primarily acts as a recipient of external shocks, with limited outward transmission effects. European countries exhibit regional interdependence, while Italy serves as an important transmission hub. Overall, the findings highlight an asymmetric and hierarchical structure of global bond market linkages, with important implications for financial stability and international policy coordination.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Haomin Qian
PY  - 2026
DA  - 2026/09/29
TI  - International Monetary Policy Spillovers based on Government Bond Yield Dynamics: Evidence from G7 Countries and China
BT  - Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)
PB  - Atlantis Press
SP  - 907
EP  - 915
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-787-3_88
DO  - 10.2991/978-94-6239-787-3_88
ID  - Qian2026
ER  -