Steepening trading conditions continue? Dual Line Capital: Fed rate cut will widen the 2/10Y US bond yield spread.

According to the The Securities Times app, Bill Campbell, global sovereign debt portfolio manager at DoubleLine Capital, stated that if the Federal Reserve adopts aggressive interest rate cuts, the yield curve in the United States will steepen further. Campbell predicts that loose monetary policy will encourage risk-taking in credit markets, but its impact on pushing up long-term yields is minimal, which could prolong the time that risk assets trade at overvalued levels.