Bull Steepener
Bull Steepener — Curve steepens as short rates fall more than long.
Definition
Bull Steepener refers to curve steepens as short rates fall more than long. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Policy-sensitive rates set the discount factor for almost every other asset class. When curve steepens as short rates fall more than long shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what bull steepener is saying. If curve steepens as short rates fall more than long moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Read spot, forwards, and real vs nominal together — one leg alone invents a story. Prefer a short written null hypothesis for Bull Steepener: what would falsify the current reading in the next window?