Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Index-Linked Report: Tap Auction In SGBi3107‏

ByDanske Markets
Published 09/25/2013, 08:00 AM
Updated 05/14/2017, 06:45 AM

Tap auction in SGBi3107. Given the last auction, favourable pricing and this linker bond standing out among the others as being expensive in the repo market, we expect the auction to be well received.The recent tumble in the oil price has compressed BEI rates. However, after altering our inflation forecast accordingly, our assessment is that that the move is overdone.

We still suggest buying short BEIs, as these imply an all-time low CPIF rate over the next few years. Note, however, that longer BEI rates are now also trading at attractive levels. Hence, we advise taking profit on our earlier recommendation for a flatter BEI curve. One way to protect (short) BEIs against declining commodity prices is to do a BEI box versus Europe as the difference in the inflation outlook between the areas is not reflected in the market pricing.

We have received more tentative signs that inflation is slowly and gradually picking up in Sweden. The companies' management expectations of own prices are the highest recorded since the SKOP index started in 2007. In addition, we are more confident that the Riksbank will be on hold for longer and will be 'happy to allow' inflation to rise faster towards the inflation target.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.