The Riksbank is likely to cut both the repo rate and the path next week, possibly indicating a downside risk to the latter. Inflation is far below its forecast, international disinflationary pressures and weak manufacturing production in Sweden's main trading partners, and soft signals from the ECB and Norges Bank and not least long (5Y) inflation expectations are further below the inflation target.
Go against pricing in H2 14 in FRADEC14 - we also like 2015-16 covered bonds.
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