Euribor 6M 2s10s steepener

The repricing of the short part of the curve in $ seems to us to have reached a significant ceiling in the implicit soft guidance provided by the Fed in its DOTS plot . In periods of high uncertainty, € rates are driven by the US curve and the inflation and activity outlook seems less uncertain in the eurozone. We choose to express this view on the € curve with a Euribor 6M 2s10s steepener , to the extent that the risk of a curve position now seems asymmetrical and biased towards re- steepening. We enter the position at - 49.5 bp with a target of 0bp , with a 3 - month horizon ( stop loss at -75bp) .