Posted by DigiNomad on 9th of Apr 2024 at 12:37 pm
Unless it goes positive because of the long end rising faster
than the short end. That is bullish for asset prices (signal longer
term economic growth and higher inflation expectations). The curve
has rarely univerted with a "bear steepener" so we mostly don't
talk about it (rates are usually falling when the curve uninverts).
*Note that the bear in bear steepener is bearish for bonds and
bullish for equities (typically).
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Unless it goes positive because
Two / Ten is shrinking. When the ratio goes positive, ...
Posted by DigiNomad on 9th of Apr 2024 at 12:37 pm
Unless it goes positive because of the long end rising faster than the short end. That is bullish for asset prices (signal longer term economic growth and higher inflation expectations). The curve has rarely univerted with a "bear steepener" so we mostly don't talk about it (rates are usually falling when the curve uninverts). *Note that the bear in bear steepener is bearish for bonds and bullish for equities (typically).