HALISTER1: Sweden May Lower Borrowing in Foreign Currency and Bills: Nordea

Sweden May Lower Borrowing in Foreign Currency and Bills: Nordea

(Bloomberg) -- Expect Swedish National Debt Office (NDO) to handle a lower borrowing need through lower issuance of foreign currency and bills, Nordea analysts Jerk Matero and Mats Hyden write in note.
  • NOTE: NDO releases its second debt report for the year with updated macro and borrowing forecasts on June 15
  • Expect the NDO to revise its borrowing forecast for both 2016 and 2017 because of a larger budget surplus this year and lower deficit next year
  • Predicts it will keep issuance volumes and number of auctions unchanged for both nominal and index-linked bonds
  • Borrowing report will likely breathe optimism and strength, a marked contrast to the situation in the euro zone
  • Swedish government bonds should stay supported and SEK swap spreads may have an even better potential to widen than their euro zone peers in the event of a “leave” outcome in the U.K. EU referendum
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jerk Matero (Nordea Bank AB)
Mats Hyden (Nordea Bank AB)

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