> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# /analyze-swap-curve

> Analyze the swap curve with government and inflation overlays to identify curve trade opportunities

## What is a Swap Curve?

An interest rate swap is a contract where two parties exchange interest rate payments -- typically one pays a fixed rate and receives a floating rate (or vice versa). The **swap curve** plots the fixed rates at which swaps can be executed across different maturities (2-year, 5-year, 10-year, 30-year, etc.). It is one of the most important references in fixed income markets because it reflects the market's expectations of future interest rates, credit conditions, and funding costs.

The **swap spread** -- the difference between the swap rate and the government bond yield at the same maturity -- is a key indicator of financial system health. Swap spreads widen when credit concerns or funding stresses increase, and narrow when conditions are stable. Rates strategists analyze the shape of the swap curve (steep vs. flat vs. inverted) and the relationship between different tenors to identify trading opportunities.

## Command

```bash theme={null}
/analyze-swap-curve <currency e.g. EUR> [index e.g. ESTR]
```

Builds and analyzes the swap curve, overlays government yields and inflation breakevens, and identifies curve trade opportunities.

## Workflow

<Steps>
  <Step title="Discover Swap Templates">Calls `ir_swap` in list mode to find available indices and tenors.</Step>
  <Step title="Build Swap Curve">Calls `ir_swap` in price mode for standard tenors (2Y through 30Y). Extracts par swap rates and DV01.</Step>
  <Step title="Overlay Government Curve">Calls `interest_rate_curve` to compute swap spreads at each tenor.</Step>
  <Step title="Decompose Real Rates">Calls `inflation_curve` to compute real swap rate = nominal minus inflation breakeven.</Step>
  <Step title="Synthesize">Computes curve metrics (2s10s slope, 5s30s slope, butterfly), identifies trade opportunities, and presents with DV01-neutral sizing.</Step>
</Steps>

## Output

Lead with curve shape summary and key metrics. Follow with swap curve table, swap spreads, real rate decomposition, and trade recommendations.

## Related Skill

See the [Swap Curve Strategy skill](/en/partner-built/lseg/skills/swap-curve-strategy) for domain knowledge on curve analysis and trade construction.