The 1969 Analogue

Readers have heard a lot (too much, maybe) from me on the bear steepener over the past two months. To briefly recapitulate, the reason you "fear the re-steepening" after an inversion is simple: It's typically a bull steepener, as the front-end rallies to acknowledge early evidence of recession and increased likelihood of Fed cuts over the medium-term. Recessions are bad. So, when the curve bull steepens out of inversion, it's trouble. Bear steepeners have been generally bullish for risk assets