
Dutch pension overhaul drives bets on euro rates curve steepening

Hedge funds are stepping back into euro rates steepener trades after taking profits during April’s tariff-driven turbulence, betting that the gap between short- and long-term swap rates will continue to widen in response to Dutch pension fund reforms and expected central bank rate cuts.
The trades, which see investors receive fixed on five- or 10-year euro interest rate swaps and pay fixed on 30-year instruments, paid off when markets whipsawed in response to US president Donald Trump’s
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