Reported 12 months ago
Morgan Stanley strategists predict a Trump presidential victory will lead to growth slowdown and inflation acceleration, making yield curve steepeners an appealing bet. Following the US presidential debate, there is a shift in probabilities in favor of Trump over Biden, causing bond traders to anticipate changes in immigration and tariff policies, potentially resulting in more US interest-rate cuts. Analysts recommend adding two-year/20-year steepeners in Treasuries and buying inflation hedges in the US Treasury market as a strategy for a potential Trump re-election.
Source: YAHOO