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Spillovers To Scandi Market From Greek Crisis

Published 06/29/2015, 06:34 AM
Updated 05/14/2017, 06:45 AM

Watch the DKK and SEK as the key indicators for monetary policy and rates in Sweden and Denmark.

There is a risk for a renewed flight-to-quality into Scandinavia, but not to the same extent as in 2011-2012.

Currently, the long-end of the Danish government and mortgage curve are trading bond yields) as well as spreads to EU peers have moved back to levels before the Danish Central Bank began intervention/QE in January.

In Sweden our base case is that the Riksbank is on hold on July 2 but all eyes on the SEK.

Norway we might see some safe-haven flows this time also, though the situation is not fully comparable with 2011-'12.

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