Those moves have put the focus back on "steepening trades" - bets that shorter-dated yields will fall relative to longer-dated yields.
"Everyone is now re-looking at these curve trades," said Olivier De Larouziere, chief investment officer for global fixed income at BNP Paribas Asset Management.
"I would expect that in the next quarter, more people will start positioning for a steepening of the yield curve."
That's led to a rare situation where the bond yield curve is "inverted".
TIMING IS EVERYTHINGThe market moves over the last week highlight the risk of curve trades.
Persons:
Lucas Jackson, Olivier De Larouziere, Fabio Bassi, That's, Alexandre Caminade, Anne Beaudu, Larouziere, JPMorgan's Bassi, Franck Dixmier, John Williams, Ostrum's Caminade, Harry Robertson, Sharon Singleton
Organizations:
Federal Reserve Bank of New, REUTERS, Bond, U.S, BNP, Management, U.S . Federal Reserve, European Central Bank, JPMorgan, Treasury, Ostrum, ECB, Allianz Global Investors, Reuters Graphics, New York Fed, New York Times, Thomson
Locations:
Federal Reserve Bank of New York, New York City, U.S, Europe, New