Steepener exits leave traders in search of direction
Uncertainty clouds US rates market as hedge funds pare back steepener positions
The US curve steepener trade has been the most popular play from hedge funds in US rates markets since April. But while uncertainty around inflation, a federal government shutdown and the extent of planned cuts has seen investors pare back their exposures, dealers say there is no obvious rates market trade for them to move into just yet.
“Some people have been cutting their steepeners and taking
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