Bond Traders Are Starting to Bail on Winning Yield-Curve Bet
- Schroders closed some steepener trades on US bonds this week
- Pendal is starting to look favorably on simple long positions
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Bond investors are starting to back away from what’s been one of the few bright spots for them this year amid signs yields may have peaked after an epic rout.
Money managers at Schroders Plc and Pendal Group in Sydney just closed out some so-called curve steepeners — which pay off when shorter-dated debt outperforms longer bonds. Those trades delivered gains in recent months despite a selloff in bonds spurred by hawkish Federal Reserve wagers.