On Tuesday, statistics from Sweden reveals both retail sales and trade balance numbers for December, giving us the input necessary to compute a first estimate on Q4 GDP. In general, we expect unchanged to lower figures.
This week Sweden is launching a new 10Y benchmark. As usual, the Swedish Debt Office will quickly build up liquidity in the bond through both an ordinary auction and a switch auction. Hence, we will have a new liquid 10Y bond in Sweden fairly soon. The auction will be followed by a new 10Y inflation-linked bond in February.
Norges Bank is tapping its three-year bond (May-17) on Tuesday 28 January with NOK2bn in the second auction of the year. On the macro side labour market numbers are set to steal the attention.
The jitters that flared up in emerging markets last week also put pressure on the Scandinavian currencies. Both the Norwegian krone and the Swedish krona have a relatively high correlation with risk measures such as MSCI World and VIX volatility, underlining that both currencies could come under further pressure if the current sell-off in risky assets continues.
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