The steepening in the U.S. yield curve from -60 bps to -35 bps this month is reshaping bond investment strategies. A less inverted curve typically signals improving growth expectations and shifts portfolio weightings toward longer-duration assets. Read more: 30% of US drivers switched car insurance in the last five years. Here's how much they saved — and how you can cut your own bills ASAP This depth of insight is especially important given prospects for a slowdown in economic activity, which could lead to credit fundamentals deteriorating, albeit from a strong base. Investing in bond instruments is regaining favor as U.S. manufacturing PMI dips below 50, hinting at slowing growth. Historically, such macro data has preceded a rally in Treasury prices as markets price in potential policy easing.