YIELD CURVE STEEPENER REFRESHER

Going through the math on US Treasury steepeners along with a Eurodollar hack

Let’s imagine you’re getting worried about inflation. You think that after we get through this recession, we could see a pickup in the general level of prices, and that bonds might sell off.

Seems reasonable.

However, if we look back over the past three economic declines (the early 1990s recession, the DotCom bust and the Great Financial crisis), we no…