In Sweden , the week ahead is full of interesting data and events. It will start on Tuesday (at 09:30 CEST) with inflation data. Our forecasts seem well aligned with those of our competitors, meaning we are a little above the Riksbank's forecast.
On Wednesday (at 08:00 CEST), Prospera is due to release its broader quarterly survey on (i.a.) wage and inflation expectations, which we expect to be interesting as it will be the first since the conclusion of the centralised wage negotiations.
One and a half hours later also on Wednesday, the SNDO is due to publish its new forecast on public finances and we have a feeling it will be hard for the SNDO not to revise the size of the nominal bond auctions (at least for 2016) as the net borrowing requirements have continually come in better than expected. It should be supportive for Swedish government bonds.
There are no market movers in Norway in the coming week.
In Denmark , the central bank is due to publish currency reserves data for May. The latest daily net position data points to currency intervention in support of the krone of some DKK12bn in May.
The Danish Debt Office will tap the markets on Wednesday in the 2Y and the old 30Y bond (2039). Demand for DGBs at the latest auctions has again improved after weak auctions in March and April. Given the strong demand for Swedish and Norwegian bonds last week and after FX intervention added liquidity to the money market in May, we expect decent demand this time. DGBs have performed slightly recently but we still see value, especially as DGBs can be seen as a cheap 'Brexit' hedge as discussed above.
To read the entire report Please click on the pdf File Below