A risk analyst has been assigned the task of constructing a hedged butterfly trade for the fixed-income desk manager. The manager is particularly concerned about fluctuations in the 5-year swap rate and wants to position the bank as a payer in a 5-year swap while concurrently being a receiver in both 2-year and 10-year swaps. The analyst employs principal components analysis (PCA) to assess the most influential factors affecting swap rates, identifying the level, slope, and short rate as the key components. The PCA outputs are expressed as basis point changes corresponding to a standard deviation shift in each principal component.

To proceed, the analyst collects the current swap rates and the DV01 (Dollar Value of 01) values for the 2-year, 5-year, and 10-year swaps. The manager then requests the analyst to establish a EUR 100 million notional 5-year swap butterfly position, ensuring that there is no exposure to the level and slope principal components.

Given this context:

• What are the required notional amounts for the 2-year and 10-year swaps?
• How should the risk weights for these swaps be determined in relation to the DV01 of the 5-year swap?