Hedge fund holdouts boost euro steepener bets into year-end
After some investors took profits in September, those that stayed in the trade are now doubling down
Hedge funds that stuck with the euro rates steepener trade while others took profits in September and October are now adding to their positions ahead of year-end, enticed by the positive cost of carry on offer.
Over the past two years, hedge funds have been putting on steepener trades betting that the spread between the 10- and 30-year (10s30s) fixed rate on euro interest rate swaps will widen
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