Fate Of The World Hangs On Treasury Curve’s Nascent Bear Steepener

The fate of the universe hangs on the nascent bear steepener in the US curve, along with the concurrent rise in real yields and term premium repricing. Or at least that's the way it felt coming out of last week, when a blast of lively price action+ in bonds offered some respite from an otherwise somnolent summer drift. Naturally, rates vol migrated to the right, particularly over the past two weeks, amid a still resilient macro backdrop in the US, the Fitch downgrade and supply jitters around