Core Viewpoint - The U.S. Treasury yield curve has steepened for the second consecutive trading day, driven by a weaker dollar and rising oil prices, which have both boosted inflation expectations [1] Group 1: Yield Curve Dynamics - The 2Y/10Y U.S. Treasury yield spread widened to 67.6 basis points, up from 66.6 basis points at the end of Tuesday [1] - The yield curve is exhibiting a typical "bear steepening" characteristic, where long-term yields rise faster than short-term yields as investors factor in the risk of accelerating inflation [1] Group 2: Market Reactions - According to the head of U.S. interest rate strategy at Societe Generale, a weaker dollar typically leads to long-term yields being more sensitive to inflation risks [1] - The combination of fiscal and monetary policy is seen as a "pressure release valve" for both the dollar and U.S. Treasuries, suggesting that if the policies indicate a continued weaker dollar, an increase in long-term yields is a textbook response [1]