Sweden’s Gross Bond Issuance Seen Close to Historical Lows: SEB
(Bloomberg) -- SEB predicts gross nominal bond issuance in the bi-weekly auctions to be decreased further to SEK2b in October (currently SEK2.5b), which is almost historical lows, strategist Lina Fransson writes in a note.
- Outstanding Swedish government bonds outside the Riksbank will decline to 8% of GDP for nominal bonds, 3.5% of GDP for inflation-linked bonds due to low issuance and Riksbank’s QE
- Expects the issuance to decline to SEK44b in 2018 vs the National Debt Offices’s current forecast SEK50b and with inflation-linked bond issuance also likely to be reduced
- SEK18b stronger tax revenues support SEB’s view that the currently strong growth will make the budget remain in surplus
- Risks are skewed toward a larger reduction in nominal bond issuance than assumed in the main scenario
To contact the reporter on this story: Love Liman in Stockholm at jliman1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Keith Jenkins
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HALISTER1Source: BFW (Bloomberg First Word)
People Lina Fransson (Skandinaviska Enskilda Banken AB)
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