Steep Bears
Over recent weeks, a powerful trend known as bear steepening has been making waves in bond markets. Bear steepening occurs when long-dated yields, such as those on 10-year bonds, rise more aggressively, causing the yield curve to tilt steeper. It’s helpful to visualise these 10-year yields as a continuum of the Federal Reserve’s anticipated interest rates for the upcoming decade, adjusted to present value. History indicates that when this trend intensifies without intervention, it has…