Vishal Khanduja, senior fixed-income investor at Morgan Stanley Investment
Management, said he is reducing exposure to U.S. curve-steepener trades (30yr vs
5yr) after Treasury Secretary Bessent signaled he is prepared to “do whatever it
takes” to prevent further rises in U.S. Treasury yields. Khanduja said the
potential payoff for steepeners has narrowed because the long end now has a
“non-economic buyer” in the Treasury, and that Bessent has “laid his cards on
the table,” likening the posture to Draghi’s 2012 “whatever it takes” moment.
