Steepeners whipsawed by Dutch pension scheme shifts

Long-end euro rate flows thrown off course by piecemeal updates on transition to defined contribution system

The long end of the euro rates curve is not an obvious source of drama in the bond market.

But as the Netherlands overhauls its pensions system, the resulting shifts in hedging flows have captivated the attention of traders. Hedge funds and asset managers have crowded into positions that attempt to profit from the anticipated steepening of the rates curve. Dealers say steepeners are currently the