DoubleLine Says Shutdown Adds Fuel to Popular Treasuries Trade

DoubleLine Capital says the popular strategy of betting on a steeper Treasury yield curve has plenty of room to run with the political gridlock in Washington only lending support to the trend.

The combination of Federal Reserve interest-rate cuts into 2026, sticky inflation and ballooning government borrowing will keep pushing the extra premium investors demand to hold long-term Treasuries higher in the coming quarters, according to Bill Campbell, global sovereign debt portfolio manager at the firm.