US jobs shock leads to steepener unwinds
Rates investors caught out after October jobs surprise
It was meant to be such a sure thing.
In the hazy days of late summer, US inflation was on the retreat, and rates were finally coming down: the only question was how hard and how fast. Investors that had entered the steepener trade back in August had already made some gains and with more big cuts predicted to follow, things were looking good.
But a surprise jobs report on October 4 upended that view, sending curves in the other direction.
A trader at one European bank notes that many in the market
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