Deutsche Bank strategists say hawkish signals from Fed Chair Kevin Warsh at Jackson Hole could be reflected at the September meeting, and potential additional US Treasury intervention may make direct long-end steepening positions vulnerable over the coming weeks. Still, on a longer-term, structural horizon they prefer rising term premia and curve-steepening trades, citing weak fundamentals and the view that large-scale fiscal consolidation remains unlikely.

2026-09-02

Deutsche Bank strategists say hawkish signals from Fed Chair Kevin Warsh at Jackson Hole could be reflected at the September meeting, and potential additional US Treasury intervention may make direct long-end steepening positions vulnerable over the coming weeks. Still, on a longer-term, structural horizon they prefer rising term premia and curve-steepening trades, citing weak fundamentals and the view that large-scale fiscal consolidation remains unlikely.