Potential for Further Steepening of U.S. Treasury Yield Curve Observed

U.S. Treasury Curve Outlook: Natixis anticipates further steepening of the U.S. Treasury curve, driven by both cyclical and structural factors, with forecasts predicting the spread between two- and 10-year Treasury yields to widen to 85 bps in Q4 2023 and 105 bps by Q1 2026.

Norwegian Government Bonds: SEB Research suggests that the steepening pressure on the Norwegian government bond yield curve will ease due to limited bond supply, with expectations of further tightening of long-end Norwegian bonds against German bonds as Norges Bank is likely to implement rate cuts.