• Mar 15, 2023
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  Yield Curve Steepeners
  

  
  

  One macroeconomic scenario in which using a curve steepener trade could be beneficial would be if the Fed decides to significantly lower the interest rate, which could weaken the U.S. dollar and cause foreign central banks to stop buying the longer-term Treasury. This decrease in demand for the longer-term Treasury should cause its price to fall, causing its yield to increase.

  
  

  
  
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  <div>Yield Curve Steepeners<br></div><div><br></div><div>One macroeconomic scenario in which using a curve steepener trade could be beneficial would be if the Fed decides to significantly lower the interest rate, which could weaken the U.S. dollar and cause foreign central banks to stop buying the longer-term Treasury. This decrease in demand for the longer-term Treasury should cause its price to fall, causing its yield to increase.</div><div><br></div><div><br></div>

  Yield Curve Steepeners
  

  
  

  One macroeconomic scenario in which using a curve steepener trade could be beneficial would be if the Fed decides to significantly lower the interest rate, which could weaken the U.S. dollar and cause foreign central banks to stop buying the longer-term Treasury. This decrease in demand for the longer-term Treasury should cause its price to fall, causing its yield to increase.

  
  

  
  

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