Undeterred, hedge funds bet on euro swap steepeners

Expected rate cuts and pension reforms are driving steepener flows, but large pension funds may not be finished hedging at the long end

Hedge-funds-pile-into-euro-swap steepeners

Hedge funds are returning to a popular rates trade despite uncertainties over inflation and Dutch pension reform.

Dealers report a renewal of interest in euro swap steepeners, which aim to profit from a widening gap between the fixed rates on short-dated and long-dated interest rate swaps. 

In particular, traders are taking a punt on the spread between 10-year and 30-year swaps, known as 10s30s. This basis is likely to widen if central banks cut interest rates later this year, as expected.


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here