Former Pimco executive Ed Devlin is doubling down on trades that will profit if the yield curve steepens. This move comes as he anticipates that the US may need to increase borrowing if the Trump administration loses the Supreme Court case on tariffs. Devlin's strategy reflects a growing sentiment among investors that the current economic policies could face significant challenges in the coming months.

The Supreme Court case in question centers on the Trump administration's use of tariffs, which has been a contentious issue. If the court rules against the administration, it could force the government to revisit its economic policies. This, in turn, could lead to a steeper yield curve, as investors anticipate higher borrowing costs and potential economic instability.

Devlin's bet underscores the uncertainty surrounding the Trump administration's economic policies. As a former executive at Pimco, he brings a wealth of experience in managing fixed-income portfolios. His current moves suggest that he is positioning himself to capitalize on potential market volatility stemming from the court's decision.