EUR review

The Euro also benefited from the weakness in the US Dollar and surged to highs not traded since middle of Feb. German Bund yields continued to trade in a volatile range and tested intraday lows yesterday before resuming its upward march. 

The surge higher in European Bond yields as compared to US Treasury yields is supporting the rally in the Euro. The surge in European bond yields has resulted in most sovereign yields trading in positive range in the 5-year bucket. 5-year German yields are trading higher by 26 bps over the last month. 

Across the Eurozone most sovereign 2 year yields are trading at above minus 20 bps, which means that the ECB can buy these bonds as part of its Quantitative Easing measures announced earlier this year.