Treasury steepeners and the risks | Global

The bear-steepening of the US yield curve has accelerated with growing hopes of a blue wave in the US. A political disappointment is a single biggest risk near term to our Treasury steepener calls. However, we identify steepening catalysts even in the absence of a Democrat sweep, including the ascendant Chinese cycle that would contribute to a weaker US dollar, never mind who wins the US election.

What you will learn:

  • The significant decline in the US dollar is set to push interest rates higher
  • Recent tactical calls made by the global macro strategy team
  • What the link between China's credit impulse and global industrial and trade indicators mean to bond yields 

Topics: Global economics, Global financial flows, Financial risks, Treasury

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