Reported 6 months ago
Bank of America Corp. suggests that instead of focusing on US yield curve bets, it might be more profitable to shift attention to Canada. With the current inversion of the Treasury yield curve signaling economic warnings, BofA strategists believe that the Bank of Canada may guide a more dovish path than the Federal Reserve in the next six months. They argue that the divergence in central bank policies could lead to a relative steepening of the Canadian curve compared to the US curve, making it a more favorable bet for traders.
Source: YAHOO