A Guide to Europe’s Newest ‘Safe Asset’ and Rival to U.S. Treasuries

As well as representing a significant political breakthrough, the European Union’s landmark pandemic rescue fund could prove momentous for the continent’s fractured financial markets. That’s because the 750 billion euro ($892 billion) recovery package will trigger the biggest-ever splurge in joint borrowing by the bloc’s 27 members. The hope for some is that the exercise will lead to the creation of regional “safe asset” bonds that could rival U.S. Treasuries — a goal for European policy makers