There may be an opportunity to re-steepen the US Treasuries curve with US CPI data looming. The 2Y/10Y segment of the UST curve has flattened considerably from the peak of 22bps registered in early September and is now hovering around 5bps. Much of the flattening came on the back of a repricing of Fed cut expectations as labour market data came in firm. Accordingly, as Fed cuts get priced out, front-to-belly tenors were disproportionally hit. From a rates perspective, in the absence of large economic / market dislocations, the UST curve should be trading around par. That said, we still retain a preference for steepeners, noting that the Fed easing cycle is intact. Moreover, given the strength of the data and the recent uptick in oil prices, longer-term yields may also be biased higher. Lastly, the US presidential election in November is critical, with the bond market likely to bear steepen if the odds of a Trump victory starts to tick up. If US CPI surprise on the upside, the resultant flatter curve could present a chance to express steepeners at more favourable levels. 
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