08.07.20
CME Article: Stimulus solidarity rallies euro & implications of US borrowing over $3T. By Blu Putnam, Chief Economist, CME Group
Stimulus solidarity rallies euro & implications of US borrowing over $3T
By Blu Putnam, Chief Economist, CME Group
Euro Rallies Amid Europe's Pandemic Response
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EU members to collectively raise 750 billion euros from bonds issued.
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Ground-breaking move to stimulate sagging economy rallies euro.
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Debt issuance binds 27 EU members in a coordinated fiscal initiative.
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Member-nations hit the hardest by pandemic will receive grants.
Implications of US Borrowing $3 Trillion in H1 2020
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US Treasury issued more than $3 trillion in new debt securities in H1 2020.
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Private local, foreign investors were top buyers, Fed took 46% of issuance.
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Without Fed involvement, US Treasury yields could be much higher.
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Higher gold, weaker dollar signaling rising inflation expectations?
Read the article here