Big Bond Bet Favored by Citi, JPMorgan Gets Boost Before CPI (1)

The bond trade that some of Wall Street’s biggest banks say will dominate the rest of 2024 is gaining steam before a crucial inflation reading that will help seal the wager’s fate.

The bet — that the US yield curve will normalize toward a steeper slope — is suddenly looking as good as it has in months, with traders eyeing the latest print of the consumer-price index due this week for additional support.

It got an initial boost after President Joe Biden’s June 27 debate performance appeared to ease Donald Trump’s path to retake the White House. In ...