Where to next after steeper yield curves?

Most developed market yield curves have suffered bear steepening over the past month, despite quantitative easing.

This has been largely due to a less dovish US Federal Reserve, a change in the Bank of Japan's policy, the risk of tapering by the European Central Bank (ECB) and the return of inflation (albeit still mild).  While we may not retrace previous sell-offs, it could be worth moving from a long duration bias to a more neutral stance - looking for return drivers from credit spreads and steeper curves rather than ultra-long duration. Trump trouble: Strategic bond managers take risk off table amid US treasury rout Recent studies have shown the performance of risk assets has been primarily ...