A macroeconomic hedging strategy using derivatives to exploit the changing relationships of the yield curve between short-term Treasury securities and long-term treasury securities. Used primarily to hedge against a widening yield curve due to an increase in long-term yields versus short-term yields, the trade is executed by assuming a long position in a short-term Treasury and a short position in a long-term Treasury.
Related information about curve steepener trade:
- Curve Steepener Trade Definition | Investopedia
A strategy that uses derivatives to benefit from escalating yield differences that occur as a result of increases in the yield curve between two Treasury bonds of ...
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Dec 20, 2010 ... Seeking direct and precise answers for the following questions . Appreciate it if help is given 1 ) What is a curve steepener trade? I think its got.
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Definition of curve steepener trade: A macroeconomic hedging strategy using derivatives to exploit the changing relationships of the yield curve between ...
- What Is a Curve Steepener in Government Bonds? | eHow.com
If you believe that this yield curve will get "steeper" such that long-term interest rates will be higher relative to short-term interest rates, a curve steepener trade ...
- Curve Steepener Trade: Definition from Answers.com
Curve Steepener Trade A strategy that uses derivatives to benefit from escalating yield differences that occur as a result of increases in the yield.
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If the Federal Reserve lowered interest rates, you would make money on a curve steepener trade, because long-term bonds will be worth less, ...