Most Popular Trade of U.S. Bond Market Has Now Gone Global
- Strategists converge on Japan 10-, 30-year curve steepeners
- Wall Street banks still in favor of steeper U.S. yield curve
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Strategists globally are converging on one bond market trade: betting on a steeper yield curve.
The strategy is gaining in popularity as two trends cause the curve to steepen. With short-end yields anchored by near-zero policy rates in major economies, Wall Street banks are arguing that a rebound in global growth paid for with new bond supply will send longer-dated yields climbing.