Labour Market Numbers In Sweden, Weak Norwegian GDP Numbers And DGB

Published 11/16/2015, 06:14 AM
Updated 05/14/2017, 06:45 AM

In Sweden, the week ahead is mainly about labour markets as Statistics Sweden publishes the labour force survey (including unemployment rate, employment, hours worked) on Thursday (at 0930 CET). Due, inter alia, to strong immigration over the past year, the unemployment numbers are a bit distorted, thus we will focus more on the employment numbers, which we expect to remain strong.

Also, the Swedish FSA will publish a report on risks in the Life and Pensions industry sector stemming from the low interest rate environment (Wednesday at 0800 CET), which we expect to receive market attention.

In Norway, the week brings GDP data for Q3. We forecast that mainland GDP will increase by a mere 0.1% q/q, which is marginally less than Norges Bank assumed in its September monetary policy report and would therefore put very slight downward pressure on interest rates.

The Danish Debt Management Office will on Wednesday tap in the new 2018 2Y benchmark bond and in the 10Y bond. It will be the fourth time the DMO will conduct auctions after Danish bond issuance was resumed at the beginning of October. The return to the market for the Danish Debt Office has been relatively successful as demand has been strong. Redemptions (DGB Nov '15) and coupons of DKK84.5bn today should further support especially demand for the 2018 bond at the auction.

The November 2015 mortgage bond refinancing auctions in Denmark will start today and continue for the next two weeks. The total auction amounts to DKK145bn in DKK denominated non-callable bullet bonds and EUR3bn in EUR denominated non-callable bullet bonds.

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