Reading The Markets Sweden‏: Riksbank Pressure Likely To Mount

Published 02/07/2014, 04:19 AM
Updated 05/14/2017, 06:45 AM

The Riksbank is on hold, but pressure is likely to mount going forward.

Market pricing implies a significant flattening of the curve over the year, but we do not agree.

Trades
New: we recommend taking advantage of the market-implied curve flattening and steepening of the curve on a forward basis. We recommend putting on a steepener by receiving 2Y 1Y forward against paying 10Y 1Y forward at 116bp. P/L: 135bp/105bp. Alternatively, we like steepeners on the government curve as well.

Market View In a Nutshell

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