18:48 Nov 7, 2007
We expect the USD yield curve to steepen in a first phase as the Federal Reserve cuts the Fed funds rate. In our current bond strategy outlined on the left-hand page, we recommend a neutral duration for USD bond investments. Once short-term rates have settled at the neutral level, investors are likely to seek higher returns at the longer end of the market. Similar to the situation in 2002, this would result in a flattening of the yield curve at a later stage, with the long end declining towards the level of the short end. | 
The translation workplace 
peer agreement (net): +2
