The global financial scene is becoming increasingly dynamic, with energy prices experiencing a surge and the specter of inflation making a comeback. As bond yields witness a rise, the United States, not to be left behind, is issuing more public debt, augmenting the global bond market.
However, all eyes are currently on Europe. The European Union is navigating its way through a treacherous currency and banking crisis. The European Central Bank (ECB), the institution entrusted with the stability of the euro, is walking a tightrope. It aims to uphold the euro while also trying to maintain yield spreads compared to American Bonds. Their primary goal? Prevent capital flight. But as we watch closely, one question looms large: can one truly serve two masters