Danske Markets

Enter 2s5s 6m forward flattener @ 64bp. P/L: 50bp/74bp. Roll down: 3bp/6m. After the move upward in yields, forward rates have picked up sharply and, in our view, seem to have moved too much. In...

The Conservative Party is the big winner of the UK election. Currently, it seems that the Tories are close to winning a de facto absolute majority. David Cameron will continue as Prime Minister....

Market Movers Focus is on the US job report. We expect a rebound in job growth in April with non-farm payrolls up 215,000, which is slightly below consensus. This would be a significantly higher...

On the back of increasing underlying interest rates, we saw a significant widening in the European high-yield market. The 5Y iTraxx Crossover widened by some 39bp over the week. Volatility is back...

Await excessive sell-off.Wash out - cautious at the long end, opportunities in the short end.Swaps have suffered while real rates are expensive. To Read the Entire Report Please Click on the pdf File...

Norges Bank left rates unchanged at 1.25%. As expected Olsen also stated at the press conference that a May rate cut was discussed. We expect a single 25bp rate cut in June but that NB will leave...

Market Movers The UK general election will be held today and polls continue to suggest a hung parliament. Although the election outcome is far from certain, it seems likely that Labour and the...

The timing and magnitude of the surge in EUR/USD alongside the slide in Bunds over the past week has surprised us. Near term, technicals and positioning warn of further EUR/USD gains towards pre-QE...

FX Quant Strategy provides a quantitative overview of the currency market, including several valuation tools and monitors, focusing on the FX options market. This week we recommend two FX option...

More cautious in the long end and in yield curve flatteners.Close ASW spreads with a profit.Money market rates have moved too much.Long-end linkers are trading expensive.To Read the Entire Report...

Market movers today In the euro area the final service PMIs are published. Focus will be on the first release of the figures in the periphery. In Italy, the service PMI has lagged the progress in the...

Jobs report preview We expect a rebound in job growth in April with non-farm payrolls up 215,000, which is slightly below consensus. This would be a significantly higher pace of job creation than...

Danmarks Nationalbank (DN) sold DKK33.9bn of FX in intervention to support DKK in April. The move highlights that the downward pressure on EUR/DKK has reversed and that DN is now reacting to cap...

A quantitative run through of the Swedish Fixed Income market, starting with the Riksbank and Money Markets before moving on to government and mortgage bonds. To Read the Entire Report Please Click on...

We expect Norges Bank (NB) to leave rates unchanged on Thursday but Governor Øystein Olsen to maintain a strong easing bias. We expect NB, either in the press statement or in the...

The European credit market continued to move more or less sideways. Over the week. iTraxx Main was unchanged at 60bp. iTraxx Crossover widened some 4bp to 269bp.•In the Nordic region, we saw...