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Analyst Warns: Fed Rate Cuts May Steepen Yield Curve

9/9/2025

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Summary

Story summary

Bill Campbell from DoubleLine Capital predicts a steepening US yield curve if the Federal Reserve cuts interest rates aggressively.
He suggests that easier monetary policy may encourage risk-taking in credit markets but won't stabilize rising long-term yields.
Two-year Treasury yields are at their lowest since 2022, while 10-year yields hit a five-month low.
Treasuries have rallied for four days as traders buy long-dated bonds ahead of inflation data.
The yield on 30-year bonds dropped to 4.69%, the lowest since early May, down from nearly 5% last week.

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Story summary

Bill Campbell from DoubleLine Capital predicts a steepening US yield curve if the Federal Reserve cuts interest rates aggressively.
He suggests that easier monetary policy may encourage risk-taking in credit markets but won't stabilize rising long-term yields.
Two-year Treasury yields are at their lowest since 2022, while 10-year yields hit a five-month low.
Treasuries have rallied for four days as traders buy long-dated bonds ahead of inflation data.
The yield on 30-year bonds dropped to 4.69%, the lowest since early May, down from nearly 5% last week.