Long dollars a long shot as investors doubt US reform

Public sector borrowers looking to bring long dated funding in dollars before the end of the year could likely have their hopes dashed, with investors sceptical that proposed US economic reform will come to fruition — providing downward pressure on dollar bond yields. At the same time, the sweet spot for euro issuance may also move toward the shorter end of the curve, with investors expecting an appreciation in the euro — which has helped Bund yields move lower — to slow.