Two major Wall Street players—one a legacy investment bank, the other a Canadian financial giant—are betting on a dramatic shift in the Treasury market. Their forecast? As the Federal Reserve rolls out rate cuts over the coming months, expect the yield curve to steepen aggressively. Short-term rates dropping faster than long-term ones could reshape borrowing costs across the board, rippling through everything from mortgages to risk assets.
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AirdropSkeptic
· 9h ago
The yield curve is about to make waves again; these old foxes on Wall Street really dare to gamble.
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ProposalManiac
· 9h ago
The yield curve has steepened... In simple terms, it is still betting on the Fed's policy expectations, and this mechanism design itself hides the pitfalls of information asymmetry. Historically, the operations after the reverse yield curve in 2019 have profound lessons.
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DeadTrades_Walking
· 9h ago
Uh... are they talking about the steepening of the yield curve again? I've been hearing this trap for several years, and it feels like it never materializes.
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SandwichTrader
· 9h ago
Damn, interest rates are going to be cut again. Can this really save the market?
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RugpullAlertOfficer
· 9h ago
The yield curve steepening has arrived, should we really enter a position this time?
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MemeCoinSavant
· 9h ago
ngl the yield curve steepening thesis is lowkey based but wall street calling it "dramatic" is cope... they're just front-running retail panic fr fr
Two major Wall Street players—one a legacy investment bank, the other a Canadian financial giant—are betting on a dramatic shift in the Treasury market. Their forecast? As the Federal Reserve rolls out rate cuts over the coming months, expect the yield curve to steepen aggressively. Short-term rates dropping faster than long-term ones could reshape borrowing costs across the board, rippling through everything from mortgages to risk assets.