Yield Curve Strategies-Flattening of YC

In case of YC flattener strategies, we will be duration neutral. But wont the LT bonds benefit if rates fall when the YC flattens. Then why be duration neutral?

Maybe your mandate is to match the duration of the benchmark, or at least be close (e.g., ± 0.25 years).

But if you dont have any constraints, then?

Go wild!

:rofl: :rofl: