The 20+ Year Treasury Yield (TLT) is poised for potential steepening in February, according to a recent BofA Global Research report. The investment-grade (IG) 10s30s non-financial spread curve has flattened by 4 basis points since mid-December, but BofA analysts anticipate a reversal due to two key factors: declining rates and an expected increase in 30-year bond issuance. "The steepening is typically driven by yield-sensitive demand when interest rates increase," the report notes, highlighting that the 30-year Treasury yield has decreased by 15 basis points since January 14. Additionally, the share of 30-year supply, which was below the five-year January average, is expected to double in February and March, further contributing to the steepening of the 10s30s IG curve. As investors adjust their portfolios, net buying of 1-10 year bonds and selling of 30-year bonds have been observed, indicating a shift in market dynamics.