The inevitable effects of unemployment and business closures will take time to materialise on bank balance sheets. European institutions have played an important role here too. The European Banking Authority (EBA), for example facilitated the delivery of payment breaks.
The degree of US government yield curve steepening will depend on the pace of policy normalisation by the Fed, on the depth of tax cuts and the level of infrastructure spending. All this could lead to higher inflation expectations and a sharp repricing of term premia.