HALISTER1: Macron Win Could Lead to Tighter Sweden-Germany Spread: Swedbank

Macron Win Could Lead to Tighter Sweden-Germany Spread: Swedbank

(Bloomberg) -- If Macron wins the French election, it’s likely that the spread between Swedish and German yields will be pushed even lower, at least in the short term, Swedbank analysts Knut Hallberg and Jorgen Kennemar write in a note.
  • Looking a little further ahead, if French political risk fades, it would give the Riksbank the flexibility to more quickly retire from its ultralight monetary policy
    • That could push Swedish yields higher, especially those with slightly shorter maturities
  • NOTE: Riksbank’s surprise decision to boost stimulus splits board

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Jorgen Kennemar (Swedbank AB)
Knut Hallberg (Swedbank AB)

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