In Sweden inflation data for October are released. Our assessment is the same as the markets, that is, an outcome one tenth below the Riksbank's forecasts for CPI and CPIF.
Minutes from the latest Riksbank monetary policy meeting (Tuesday at 09:30 CET) are also published. The focus is on Board members' views on the measures they prefer in the event that inflation does not accelerate as intended or if the economic outlook deteriorates.
The Swedish FSA announced on Friday that it will introduce measures to reduce risks related to household debt. The measures will be published on Tuesday at 14:00 CET.
The Swedish debt office will tap SEK3.5bn in the 3.75% Aug '17 on 12 November. Given that the bond still offers a marginally positive yield contrary to the Jul '16 that is trading in negative territory, we look for decent demand at the auction. The 10Y segment, however, still stands out as the cheapest segment relative to Germany. The Swedish debt office will also conduct two exchange auctions next week. The debt office offers exchanges for bond SGB 1047 5.0% Dec '20 on Thursday and Friday.
In Norway we estimate the annual rate of core inflation was unchanged at 2.4% in October, which is only marginally less than Norges Bank assumed in its September monetary policy report and may therefore dampen expectations of a rate cut and support the krone.
On Tuesday 11 November Norges Bank will tap NOK2bn in the NGB 4.5% May' 2019 bond (NST 473). We recommend a cautious approach to the auction given the stretched pricing of rate cuts in Norway.
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