Accordingly, traders have found a new way to hedge their Treasuries exposure-betting on a flatter yield curve. Because Yellen is seen as the most dovish of the potential appointees, the odds of a flatter yield curve seem inevitably, as any new leader would likely hike short-term rates. For instance, if the economy got moving in a big way (including with a high inflation report), long-term rates could jump faster than short-term rates, totally unwinding this trade.