Henry Allen, an analyst at Deutsche Bank Research, said in a note that a further sharp steepening of the US Treasury yield curve was entirely possible. This steepening - that is, the widening gap between short- and long-term yields - could be due to a fall in short-term yields or a rise in long-term yields. The macro strategist said the Fed still planned to cut rates further, with its dot-plot forecast showing two more cuts this year. That would push short-term yields lower. Likewise, he said, the potential fiscal stimulus from the extension of Trump's tax cuts would push long-term yields higher.