Euro supported by USD weakness, dovish ECB bets and increased EUR-denominated bond issuance
The selloff in US equities eased yesterday as pressure in the bond space declined. But the news is far from reassuring for a sustainable relief: US politicians continue to turn a blind eye to the stress building in the sovereign bond space. The House of Representatives passed Trump’s ‘beautiful’ tax bill yesterday—with just one vote. But one vote is all it takes to send the bill to the Senate, which is narrowly controlled by the same Republicans who proposed it. As such, US yields have eased slightly but the crisis is far from over. The US dollar was better bid...