Reflation Trade Roars Back Without the Yield Curve’s Buy-In
- Energy, financial stocks rally alongside oil and the dollar
- Treasury yield curve flattens as traders price in rate hikes
This article is for subscribers only.
Banks, small caps, commodities and the dollar rallied after the Federal Reserve decision in what looked like a classic iteration of the reflation trade. One problem: the Treasury market didn’t play along.
The Treasuries yield curve flattened to levels last seen more than a year ago after officials showed a growing inclination to raise interest rates in 2022.