Sina US Stock News In the early morning of the 20th Beijing time, according to a Bloomberg report, John R. Taylor, the former head of FX Concepts, the world's largest foreign exchange hedge fund, believes that currently one of the most popular trading methods in the US bond market is no longer applicable, which is not the same as that of John B. Taylor, a professor of economics at Stanford University and a popular candidate for the next Federal Reserve Chairman.

John R. Taylor said he came to the following conclusion by analyzing the statistical pattern: the flattening of the yield curve is over. As inflation is expected to remain healthy, investors have narrowed the yield difference between 2-year and 10-year US bonds to the lowest level since 2007.

Stanford's John B. Taylor is famous for the monetary policy rules that bear his name. In his opinion, the federal funds rate should be much higher than the current level (if interest rates are raised, it may create room for further flattening of the yield curve).

“As can be seen from the cyclical trend, the flattening of the curve is either over now or will end within two weeks - maybe after the ECB meeting (?)” Taylor stated in his “Taylor Global Vision” report on Thursday. The report charges $25,000 per year. “This is true of the cyclic data,” the report said.