Impact of the Federal Reserve’s quantitative easing during the 2020 pandemic on Peruvian sovereign bonds and Peruvian mining stocks
DOI:
https://doi.org/10.26439/pjm2026.n004.9220Keywords:
quantitative easing, Federal Reserve, Peruvian financial market, sovereign bonds, mining stocksAbstract
Aim: To analyze the impact of the Quantitative Easing (QE) implemented by the U.S. Federal Reserve on the Peruvian financial market, particularly on ten-year sovereign bond yields and the performance of mining stocks. Methodology: A quantitative time-series approach was employed using a vector autoregression model. Financial and macroeconomic variables associated with external liquidity and Peruvian market conditions were analyzed. Impulse response functions were also used to assess the transmission of shocks associated with QE. Findings: The results show differentiated responses across asset classes. The change in the ten-year Peruvian sovereign bond yield exhibited a positive response during certain periods following the shock, while the mining index return showed a positive and more immediate short-term response. These findings should be interpreted in light of the coexistence of external financial conditions and domestic factors during the period analyzed. Originality/value: The study provides empirical evidence on the transmission of changes in Federal Reserve liquidity to the Peruvian financial market and the differentiated responses of fixed-income and equity assets. Practical implications: The findings contribute to understanding the sensitivity of Peruvian financial assets to changes in international monetary conditions, providing relevant information for risk and portfolio management. Social implications: The results contribute to understanding the exposure of an open economy such as Peru to external financial shocks and highlight the importance of strengthening macrofinancial resilience to changes in global liquidity conditions.
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