Could the ‘Flattener’ Trade Be Running Out of Steam?
Rates traders for months have been betting that long-term bond yields will fall relative to short-term ones — and for months it’s been paying off. But that bet on the so-called flattening of the yield curve may be in the nascent stages of reversal. Strategists at Ned Davis Research say they’re closing out their so-called “flattener” trade, citing a shift in technical and fundamental indicators. “The flattening trend has lost a great deal of momentum,” said the strategists, led by Joe Kalish, in a research note. They added: “Some important intermediate-term downtrend lines were recently broken, suggesting the days were numbered for the flattener trade.” Read more...
To learn more about the featured content please complete the form below.