QuantForcesquant interview practice

RB_CH03_Q010. Yield curve steepens strategy bond

difficulty 1700·answer type: strategy·Not solved

Problem

You believe that the yield curve is going to steepen very soon. It may be a fall in short-term rates, a rise in long-term rates, or some combination of these. What strategy would you pursue in the bond market to position yourself to profit from your beliefs?

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