Office Of Financial Research Monthly Financial Markets Monitor For May

The OFR released its monthly Financial Markets Monitor for May. The monitor says that over the last month, long-term euro area bonds experienced a sharp sell-off, leading to outsized moves in other major global bonds, including U.S. Treasuries. The sell-off reflects a partial unwinding of the euro area “QE trade,” in which investors established sizable positions in euro area bonds, equities, and the euro in response to the European Central Bank’s expanded asset-purchase program.

The monitor is posted on the OFR website at: http://financialresearch.gov/financial-markets-monitor

The OFR home page is at: www.financialresearch.gov