Danske Markets

The EONIA curve has moved lower and the current curve (dark blue line) is now close to the December curve. What are the implications of the current curve?1. Reduced downside for short-end EUR rates2....

The outcome of the Italian election where the Bersani coalition seems to have secured a majority in the lower house but fails to reach majority in the senate is particularly unfavourable and opens the...

Hung parliament in Italy and already discussions that re-election is needed and that election laws need to be changed.Fears that the debt crisis might be reignited could potentially resurface. Strong...

The election results show that Bersani has won the lower house but no coalition will be able to form a majority in the senate.In this unfortunate situation, the Italian president can install an...

The flash estimate for HSBC manufacturing PMI dropped from 52.3 in January to 50.4 in February, suggesting that the Chinese economy has again started to lose momentum. However, February data is...

Global recovery intact, but US soft patch can create new fears There are increasing signs that 2013 could be a repeat performance for the US economy, with a strong start to the year followed by weaker...

This week, the scorecard recommends buying AUD, JPY, SEK while selling EUR, CHF, USD.Australian interest rates are currently outperforming other G10 currencies. Both the risk premium and the technical...

1. Continued weakness in the UK’s medium-term growth outlook due to the anticipated slow growth of the global economy, and the drag on the UK economy from the ongoing domestic public- and...

Friday evenin:g Moody's became the first rating agency to strip the UK of its AAA rating.The first day of the Italian elections took place with unpublished opinion polls suggesting that Bersani is...

Market movers aheadThe first exit polls from the Italian general election on Monday afternoon will be scrutinised to see whether Pier Luigi Bersani and Mario Monti are able to form a centre-left...

It has been akin to a perfect storm for energy and metals this week. First of all, the USD index reached a six-month high after the FOMC revealed a varying set of views on how to exit from...

LTRO 2 repayment EUR61bn (356 banks repaid) versus around EUR125bn expected.Fourth repayment of LTRO 1 EUR1.7bn (nine banks repaid).EUR money market curve flattened after announcement.The initial...

HeadlinesStable credit spreads and modest primary market activityMarket commentary Credit spreads have been largely stable in recent weeks and the newsflow is currently limited. Towards the end of...

The negative sentiment has continued on concerns about a weakening growth outlook and the outcome of the Italian elections.The Spanish bank Bankia will reveal an annual loss of more than EUR19bn...

We book profit on recommendation to receive 5Y5Y EUR swaps vs. paying 10Y10Y EUR swaps. ½ position was opened on 8 February at 39.5bp and we close it at 49bp. Including roll down and trading...

We sense that the FOMC is moving towards a more flexible stance on the size of asset purchases. If so, the risks of holding positions in treasuries may rise with gradually higher yields, something...