A One-Day Rival to Treasuries Is Born in Europe’s Pandemic Bonds
- Central banks bought almost 40% of bloc’s new 10-year debt
- Dollar still leads, yet EU bond is “big step forward”: Papadia
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The European challenge to U.S. dominance of global financial markets just got a shot in the arm.
After a record-smashing debut bond sale by the European Union this month to help fund its pandemic recovery, traders are contemplating whether the region’s assets could one day emerge as an alternative haven to Treasuries. This was just the first salvo in the bloc’s plans to sell almost $1 trillion of debt in coming years, a move that will forge a fully fledged market that could ultimately lure investors to the euro at the dollar’s expense.