Flat curves and banks

Ask what is the transaction costs for a treasury curve trade?

When rates were 'zero' the market rate continued to report a 15 basis point rate, the cost of doing the transaction.  If you adjust your curve bets across three term points then you have eaten up the 50 basis point slope with transaction costs.

We are back to clerks and customers.  We have a bunch of idle clerks at the treasury trading desk, the curve should be consolidated to a 2, 5, and 10 year structure, three term points is all we can track.

Thus, when the curve dropped below 50 basis points the bank stocks took a hit, they are due for requant.