Re: Inflation/Oil/Gold/Yield Curves - Revisiting Bear Steepening, Recency Bias & That 70's Show.
"Loss of Faith" narratives abound with respect to the UST and USD with the recent Bear Steepening. I argue that this was entirely predictable and driven by Macro/Cyclical factors.
Revisiting Bear Steepening
In June, 2022, I wrote a thread that proposed an “out-of-the-box” solution to the Fed’s dilemma of how to cure Inflation without potentially also creating a Credit Crisis. In short, I said that the Fed and Treasury needed to work together to engineer a Bear Steepener:
