Reported about 1 year ago
Wall Street's bond trade is gaining momentum ahead of crucial inflation data, backed by a bet that the US yield curve will steepen. The recent boost in the trade came after signs of a softening job market raised expectations of Fed rate cuts, leading to a wider gap between 5- and 30-year yields. The success of the steepener bet hinges on upcoming inflation readings and aggressive Fed rate cuts, with some skepticism and varied forecasts from different strategists.
Source: YAHOO