In a study of the influence of financial institutions on bond interest rates in Germany, quarterly data over a period of 12 years were analyzed. The postulated model was
yi = β0 + β1x1i + β2x2i + εi
yi = change over the quarter in the bond interest rates
x1i = change over the quarter in bond purchases by financial institutions
x2i = change over the quarter in bond sales by financial institutions
The estimated regression coefficients were as follows:
b1 = 0.057 b2 = -0.065
Interpret these estimates.