The seed of suspicion sown by the Dutch finance minister will not go away easily. In stark contrast, it was another week of strong domestic data, which suggests that Swedish economy is faring better. The fact that household credit growth is now accelerating again, will be hard for the Riksbank to swallow.
We expect increased flattening of the Swedish bond curve.
Trades
New levels
We expect increased flattening of the Swedish bond curve.
Trades
New levels
: we have reached our profit target in the flattener SGB10419/SGB1057 (+17bp). We believe there is more to come short term. We move our targets to +70bp/90bp, and lock in a small profit.
Loss taken: steeper FRA curve JUN15/JUN13, the environment is not right for this kind of position despite the relatively strong Swedish macro data. We are stopped out and take the loss of 13bp.
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