Steepening curve (close to steepest this year) has a messag

Steepening curve (close to steepest this year) has a message: the Fed can keep cutting but markets may still push long yields higher.

This disconnect has made this cutting round a highly unusual one. At the press conference Powell attributed it to growth expectation, but it is also greater term premium the additional compensation investors demand for holding long duration Treasuries in portfolios because of fiscal trajectory. Term premium has gone from years in the negative to now 70 bps, and I think it can go higher.