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Eurobond Instability

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Eurobond Instability

The Occasional Speculator
Aug 31, 2021
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Eurobond Instability

www.theoccasionalspeculator.com

I continue my short of the June 2022 Eurodollar contract. A new reason is the lack of normal free market in bond pricing- in this case in the European corporate market as seen here:

https://www.zerohedge.com/markets/blain-feds-taper-going-expose-fundamentally-broken-market

The article predicts a massive supply of Eurobonds upcoming just as the US Treasury auctions will be growing both because the Treasury’s cash position has declined dramatically as well as accommodating the ever growing Treasury refinancing needs.

Could this huge supply of bonds this fall force the Treasury to go back to a normal process (ie significantly higher interest rates) in oder to sell all those bonds?

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Eurobond Instability

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