Yield Curve Strategies in a Flattening Environment

XYZ Asset Management is managing a fixed income portfolio with a current duration of 5 years, predominantly comprised of U.S. Treasury bonds. The firm is considering implementing a yield curve strategy to enhance portfolio returns amidst expectations of a flattening yield curve.

As a fixed income portfolio manager, discuss the key yield curve strategies that could be utilized in this scenario. In your response, explain the rationale for these strategies, how they align with the forecasted market conditions, and the potential risks associated with each strategy. Additionally, provide a comprehensive analysis of how the portfolio's current exposure may need to be adjusted in light of these strategies.