Analysts Eye 'Bull Steepener' Bond Trade in 2024 if Fed Pivots to Rate Cuts
• The "macro trade of 2024" is the curve steepener, where long-term Treasury yields rise above short-term yields
• This could happen if the Fed cuts rates in 2024, sending short-term yields plummeting
• A "bull steepener" is fueled by expectations for 3-7 Fed rate cuts of 0.25% each in 2024
• Timing the trade is a challenge due to the Fed's "higher-for-longer" rhetoric
• A steeper curve signals greater economic optimism and fits with forecasts of a soft landing in 2023