Analyzing global fiscal and monetary policy using FRED and ECB data
In August 2026, the FRB, ECB, and BOJ all recorded month-on-month balance-sheet declines. US and European curves bear-flattened.
U.S. 30-year yields rose to 5.21%, led by the long end. ECB assets fell 2.83%, the largest decline this year. The U.S.–Europe 10Y spread hit 1.479%.
US yield curve flattening and ECB policy shift widened the US-EU 10Y spread to 145.7bp; three central banks' combined balance sheets ~$13.34tn.
US 10Y 4.45%, Euro area 3.035% and US‑EU 10Y gap widened to 141.5bp. ECB deposit‑2Y gap -53bp; FRB balance sheet +0.07% slowdown. Asymmetric central bank stances analyzed.
U.S. 10Y 4.42%, Euro area 3.14% rise. FRB and ECB balance sheets expand (FRB +0.64%, ECB +0.87%). U.S. M2 growth accelerates to 6.5%.
US 2Y +40bp to 3.82%, Euro AAA 2Y to 2.60%. ECB balance sheet shrinks while US M2 growth slows—cross-region liquidity split analyzed.
US Treasury yields fell across the curve; 10Y-2Y spread narrowed to 60bp. ECB balance sheet shrank 0.88% while FRB expanded 0.40%.
US yield curve is steepening while the Euro area and Japan undergo gradual rate normalization. Three central banks' balance sheets total $13.38 trillion; money supply growth in US/EU remains near 4%.
