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Traders keep betting on a steeper European yield curve
The position is being sustained despite geopolitical volatility that has repeatedly disrupted the trade and altered rate expectations.
Hedgeweek, citing a Bloomberg report, said hedge funds and other institutional investors are continuing to back a popular European fixed income trade focused on steepening the yield curve.
According to the coverage, the strategy has faced repeated setbacks as geopolitical tensions have affected market conditions.
The reporting also links the challenges to shifting interest rate expectations in Europe, which have challenged the timing and performance of the trade.
Despite those disruptions, the funds appear to be maintaining their exposure to the steepener bet.