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2025-09-17 18:10:19
[EU Issuing Short-Term Debt in a Spree! Yield Curve Inverts Signs] ⑴ The European Commission auctioned three-month Eurobills on Wednesday, achieving an average yield of 1.936%, successfully completing a short-term financing operation. ⑵ The average yield on six-month Eurobills auctioned during the same period was 1.964%, 2.8 basis points higher than the three-month variety, indicating the emergence of a term premium. ⑶ Most notably, the average yield on 12-month Eurobills reached 2.003%, not only higher than the shorter-term variety but also creating a steepening of the short-term yield curve not seen since 2023. ⑷ The total amount raised from the three-term bond auction was not disclosed, but the yields for each maturity were accurate to three decimal places, reflecting the market's accurate pricing of EU short-term debt instruments. ⑸ The 12-month bill yield broke through the psychologically significant 2%, setting a new auction high for the same period this year, indicating a continued rise in investor expectations for the eurozone's short-term interest rate outlook.
