Reported about 10 hours ago
Bond traders are facing unprecedented difficulties during the ongoing Federal Reserve easing cycle, with 10-year Treasury yields rising sharply despite recent rate cuts. As the Fed signals a slower pace of monetary easing for 2025 amidst persistent inflation concerns, traders recalibrated their expectations for future rate cuts. The current market conditions have favored a strategy called the curve steepener, which bets on short-term Treasuries outperforming their longer-term counterparts. However, uncertainty surrounding economic policies from the incoming Trump administration may keep financial markets volatile in the coming year.
Source: YAHOO