Lockdown may be the word of the year, but rotation is the name of the game in November. The main debate taking place among traders is whether it’s got legs. Bank of America’s global fund manager survey paints a worrying picture. Things won’t be different this time, the report seems to indicate. The net percentage of respondents expecting a steeper yield curve is at levels similar to the most elevated extremes of recent years – eg in Oct 2008 (Lehmans), the 2013 ‘taper tantrum’ and the Nov 16 Trump election win. After each of those, whilst the yield curve did continue to steeper for a short time, it was a false alarm and the curve went on to flatten.
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