Rates Spark: Heavy Treasuries and tight eurozone liquidity
EUR/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
UOB | Bearish | 1.1140 |
ABN AMRO | Bullish | 1.1500 |
Bank of America | Bullish | 1.1500 |
From the original
US Treasuries remain under pressure. It's a slow grind, but the net direction remains up in yield, and in particular in long yields. Front-end yields have been reacting lower to the weaker data. But the back end has other things on its mind. In the eurozone, the decline of excess
Related speeches
4 itemsRates Spark: Heavy Treasuries and tight eurozone liquidity
Euro weakens below 1.1350 on higher US Treasury yields, Lagarde's dovish tilt - tmgm.com
Rates Spark: Don’t get too comfortable
The desk interprets the current stabilization in US Treasuries as a temporary reprieve rather than a true market reversal, with potential risks looming ahead. According to the analysis, recent Treasury auctions indicate robust demand, but the environment remains fragile, keeping options open for price adjustments. Per the full note [source], the 10-year yield sits just below 5.25%, reflecting a calm that may not last as market participants could reignite discussions on fiscal policies, particularly around the looming mid-term elections. Current consensus for EUR/USD reflects a mixed outlook as varying targets from banks suggest differing perspectives on future currency strength.