Investors turn to steepeners to capitalize on Fed cuts
European institutional investors wishing to capitalize on anticipated rate cuts by the Federal Reserve are turning to curve steepeners.
Graph of the week: Inverted yield curve? Don't panic
As might be expected, the US 10-year - 3-month yield curve has also turned negative. This inversion means that the two traditional yield curves with the longest and most reliable track record as recession predictors are now negative. By itself that’s is no reason to sell equities, or any asset class for that matter.