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IS THE CURVE STEEPENER TRADE OVER?

Bloomberg’s chart of the day notes the extreme spread between10 year treasury yields and CPI.  We’ve noted before that the reflation trade is overdone and the inflation fears are unfounded at this juncture.  The last time the spread was this high we went through over 10 years of falling yields.  Could we be in for the same kind of price action going forward or will inflation eventually take hold of the economy?  Thoughts & comments are welcome.

spreads

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