Rates Weekly: One thing can hide another: after the Dutch pension fund reform, the Solvency II reform

EUR rates:Recap of the week:  The Bund curve has been flat over the week. EUR Swap curve remained under steepening pressure, with 10s30s comfortably >30bp. Regarding the front-end on the EUR curve, the ECB account from the October meeting has reiterated that the central bank feels it is in a “good place.” On sovereign spreads, 10Y BTP and Bono spreads vs. Bund have both reached multi-decade lows this week.Tactical view:  Low volatility remains a key theme until year-end. The 10Y Bund should keep trading in its recent range (2.65-2.75%) and carry premium should be earned on the belly of the BTP curve. Expect further steepening on the long end of the swap curve, while the swap spread slope (10Y vs 30Y vs. Euribor 6m) will keep steepening too.Insights of the week: One thing can hide another: after the Dutch pension fund reform, the Solvency II reform.US rates:Treasuries this week saw a modest rally with a small flattening bias as none of this week’s data pushed back against now-high expectations for a December rate cut, and as the news that Kevin  We tactically short 10yr yields against 4% while also eyeing January FOMC meeting date pricing for value over the next couple weeks.