Deutsche Bank: U.S. Treasury yield curve may steepen significantly

Henry Allen, an analyst at the research department of Deutsche Bank, stated in a report that it is entirely possible for the US Treasury yield curve to steepen further. This steepening situation - that is, the widening gap between short-term and long-term Treasury yields - may be caused by a decrease in short-term Treasury yields, or it may be caused by an increase in long-term Treasury yields. This macro strategist indicated that the Federal Reserve still plans to further cut interest rates, with its dot plot forecast indicating two more rate cuts this year. This will push short-term Treasury yields lower. Similarly, he also stated that the potential fiscal stimulus measures resulting from the delay in Trump's tax cut policy will push up long-term Treasury yields.