A reckoning in the EU and more on US yield curve steepening

Two separate issues here today. The first is on the yield curve in the US. And the second is on the slow vaccine rollout in the EU and its impact on the economy.

The three yield curve outcomes

Let' start with the yield curve. We began the year in the US with the overnight rate at 0% and the 10-year Treasury around 0.90%. Due to the reflation trade, in mid…