The Fed's Tightening Cycle Continues

The recent steepening of the curve ran into something of a roadblock on friday with a market sell off in the two-year sector which had very little obvious origin outside of position squaring. In the week ahead given that the only real supply of relevance on the nominal side will be the 20 year we see the path of least resistance being a steeper curve all else being equal five thirties anytime it dips below 10 basis points we are going to view that as an opportunity to scale into a core steepening position. 350 remains an important focal point for the 10 year sector in the attempt to sell off beyond 360 or 365 we view as a buying opportunity but wouldn't fade an initial