A Bond Trader Made $10 Million by Betting the Yield Curve Is Too Flat
- Big futures trade adds to steepening momentum amid selloff
- 10-year yield exceeds 200-day average, first time since August
The U.S. Treasury building is shown in Washington, D.C.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
Traders in the $14.1 trillion Treasuries market are signaling that the persistent flattening of the yield curve this year has gone far enough.
The outperformance of longer-maturity debt has been a dominant theme in the market for months. Now, open interest data show investors are unwinding wagers that the slope of the yield curve from five to 30 years will fall, after it turned the flattest in nearly a decade.