Rates Spark Resumed Steepening Impulse

The report highlights a resumed steepening of the US and Eurozone yield curves following recent payroll data. Analysts expect short-term yields to fall as immediate rate hike pressure eases.

Key Takeaways

• 1.The yield curve is experiencing a steepening impulse driven by expectations of lower short-term yields and resilient long-dated yields.
• 2.US employment data for June, specifically the 4.2% unemployment rate, has reduced immediate pressure for rate hikes.

Table of Contents

• US employment data leaves the curve net steeper, from the front end
• Dovish trend can continue in near term until oil backs up again
• Friday's events and market view

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