Bond Bulletin

The US Treasury yield curve has steepened meaningfully this year. Front-end yields have fallen on near-term rate-cut repricing, while the back end faces its own structural pressures. We explore why the curve has been steepening and whether this trend might continue.

What does this mean for fixed income investors?

The macro and policy backdrop is increasingly conducive to curve steepeners. Front-end rates are anchored by slowing growth and looming recession risks, while the back end faces structural and political pressures. Technical flows and current valuations still suggest there is room for further steepening. With the 2s10s spread still compressed relative to historical post-recession norms, steepeners could be an asymmetric and timely expression of the current environment.

About the Bond Bulletin

Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.

Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.



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