Which of the following is NOT a characteristic of a yield curve strategy?

A yield curve strategy typically involves managing bonds across a spectrum of maturities rather than focusing exclusively on short-term bonds. Investors engage in yield curve strategies to capitalize on interest rate expectations, changes in the slope of the yield curve, and the risks associated with different durations.

By managing expectations of future interest rates, investors can position their portfolios appropriately to either take advantage of rising rates by shortening duration or benefit from declining rates by extending duration. Profiting from changes in curve slopes, such as when the curve steepens or flattens, is also a key tactic in these strategies.

Furthermore, various duration exposures allow investors to diversify their interest rate risk, ensuring that the impact of interest rate changes is mitigated across different parts of the curve rather than being concentrated in any single segment. Therefore, emphasizing exclusively short-term bonds does not align with the broader objectives and characteristics inherent in yield curve strategies.