- The mess around Cyprus unambiguously increases the attractiveness of Swedish government bonds. If it continues, it could of course have bearing on Riksbank action. At the same time, it is easy to note that recent Swedish data has generally been better than the Riksbank's forecast.
- We expect the data deluge next week to show rising confidence, stabilising export growth, a slightly increased rate of sales in retail and possibly a little higher rate of household loan growth. It should add to the overall impression that the economy is a little better than expected. And in the end, it should have implications for the view of the Riksbank.
- On the back of renewed market turbulence, we reduce our net delta exposure. We do, however, continue to fundamentally disagree with pricing on the Riksbank.
We reiterate our recommendation to buy SGBi3105 in a break-even spread against SGB1049.
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