US Yield Curve to Steepen Further with Aggressive Rate Cuts, Says DoubleLine's Campbell

DoubleLine Capital's Bill Campbell expects US yield curve to steepen with aggressive Fed rate cuts, encouraging risk-taking in credit markets. A steepening curve could lead to a lower dollar and further underperformance of long-dated Treasuries. Campbell sees the yield curve differential potentially increasing by 75-100 basis points, matching its March 2021 spread. Weak US payrolls data has fueled bets for multiple Fed rate cuts this year.