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Daily Economic Briefing Drucken
ISK depreciates 0.3%
The ISK hovered around its opening value of 158.8 for most of the day, but took a downward turn around mid-afternoon with the TWI peaking at nearly 160. The currency rebounded somewhat and closed down by 0.3%, the TWI closing at 159.25. This week the ISK gained around 3%. The EURISK closed 123.9. Total turnover in the FX market was ISK 23 bn.
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Treasury yields rising
Yields rose on all Treasury notes, except RIKB 13 which declined by 1 bp. Yields on RIKB 08 rose 23 bp and 11 bp on RIKB 09. Yields declined slightly on all HFF series. Yields on HFF 24 fell by 5 bp, while yields on other HFF series fell either 1 or 2 bp. Turnover in the bond market was ISK 10 bn.
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Forecast: Good opportunities in longer Treasury notes
Landsbanki Research published a new benchmark bond yields forecast today. Treasury note yields should drop substantially near the end of this year, when we expect policy rate cuts to begin. Yields on HFF bonds will remain low into late autumn, but could take a jump in two to three months' time if inflation slows. We expect low HFF bond yields next year, although yields on the longer series will likely remain well above their current level. The full report is available at www.landsbanki.com
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