HALISTER1: SEB Sees Tighter Swedish Long-End Spread Vs Germany in Spring

SEB Sees Tighter Swedish Long-End Spread Vs Germany in Spring

(Bloomberg) -- SEB sees further tightening potential of Swedish long-end bond spreads over Germany in the short term, supported by low government bond supply and Riksbank purchases, strategists Lina Fransson and Jussi Hiljanen write in note.
  • However, underlying picture of improving Swedish and international growth outlook that together with somewhat higher inflation should motivate continued rise in risk premiums, lifting long yields during the year
  • Swedish short yields seen moving sideways in coming months owing to dovish signals from Riksbank
  • Still, expect Riksbank to raise rates in December; markets will eventually price a turn of the monetary policy cycle

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jussi Hiljanen (Skandinaviska Enskilda Banken AB)
Lina Fransson (Skandinaviska Enskilda Banken AB)

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