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NGB Auction, DGBs To Tighten Vs Germany And Soft Riksbank Minutes‏

Published 09/22/2014, 03:58 AM
Updated 05/14/2017, 06:45 AM

In Sweden the week ahead contains trade balance data and the NIER business and consumer confidence surveys.

We take a closer look at last week's Riksbank minutes, the revised GDP numbers and the political situation in Sweden.

In Norway , a quiet key-event week awaits, the one exception being LFS unemployment.

Norges Bank will once again tap in the NGB Feb '24 and do another buy-back in the May15 NGB. We look for decent demand at the auction given the modest size (NOK2bn) and the relatively attractive yield level compared to euro-zone yields and the constructive outlook for the NOK. We still like the long end of Norway but consider entering a flattening 5y-10y strategy after the less dovish rhetoric from Norges Bank.

We take a closer look at the outlook for the Norwegian krone in light of the expected drop in oil investments in 2015 and the recent Norges Bank meeting. We stick to our positive NOK view.

In Denmark consumer confidence data will be published. Elsewhere, there will be the publication of updated macroeconomic forecasts for Denmark in both our very own Nordic Outlook and the central bank's Q3 Monetary Review.

We also take a closer look at the Danish government bond markets and argue that domestic factors are now very much in favour of spread tightening versus Germany.

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