Pension funds eye 30-year Bunds as swap spread tightens
Long-dated bonds continue to cheapen versus euro swaps, and some think they might fall further
European pension funds are weighing a move into 30-year Bunds, the price of which has fallen significantly this year against the equivalent euro interest rate swaps.
Some pension funds have already been active in buying the long-dated German bonds. Meanwhile, others believe the Bunds will continue to cheapen into the summer and are choosing to wait.
Although retirement funds are usually slow movers, a senior rates investment manager at a large Dutch pension says it has been buying 30-year cash
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