Morgan Stanley believes that as the possibility of Trump winning the US presidential election increases, the steepening of the yield curve is becoming an attractive bet, because in this situation economic growth may slow down and inflation may accelerate. The bank's strategists wrote in a report on June 29th that the first presidential debate increased the chances of Trump's re-election, which will make the public more concerned about the former president's immigration and tariff policies. Bond traders are also preparing for this, with the spread between 2-year and 10-year US bond yields widening last week to the largest since January.