Fixed income

We strive to identify strategic concerns, trends, and relevant financial information and through meticulous analyses transform this into comprehensive research and clear investment opinions for our clients.

02.02.2017 13:47

Our forecast: unchanged policy rate on 8 February

We forecast that the Central Bank (CBI) Monetary Policy Committee (MPC) will decide to keep the bank’s policy rate unchanged on 8 February, its next decision date. The grounds for the decision will presumably be that even though inflation and inflation expectations are still at target, strong demand growth, the recent depreciation of the ISK and strong demand growth call for an unchanged policy rate. ​
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01.07.2015 17:00

What does the breakeven inflation rate say about inflation expectations?

The breakeven inflation rate in the bond market has fluctuated widely in recent weeks, and it is obvious that inflation expectations are not the only factor affecting it.
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04.06.2015 12:54

We forecast a policy rate increase on 10 June

We forecast that the Central Bank (CBI) Monetary Policy Committee (MPC) will decide to raise the CBI’s policy interest rate by 0.5 percentage points at its next rate-setting meeting, scheduled for 10 June, citing a poorer inflation outlook, large domestic wage rises, increased inflation expectations, growing tension in the economy, and an increasingly accommodative monetary stance.
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13.05.2015 13:49

Monetary Policy Committee signals rate hike in June

The Central Bank’s (CBI) Monetary Policy Committee (MPC) is signalling a policy rate increase as soon as next month, owing to direct and indirect effects of demands for large pay rises and mounting tension in the ongoing wage negotiations.
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10.12.2014 13:05

Market response to policy rate cut

The bond market responded strongly to this morning’s interest rate decision from the Central Bank (CBI) Monetary Policy Committee (MPC).
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26.11.2014 16:03

Increased chance of policy rate cut?

The bond market responded strongly to this morning’s inflation figures.
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21.05.2014 14:02

Next policy rate change will be an increase

The Central Bank (CBI) Monetary Policy Committee (MPC) decided today to keep the bank’s policy interest rate unchanged.
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01.04.2014 14:51

2014 Treasury bond issuance concentrated in H1

The outlook for Treasury bond auctions in Q2 is broadly unchanged from the previous quarter.
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01.04.2014 14:39

Mutual funds prominent in auctions ...

After having scaled down their holdings last year, mutual funds and investment funds appear to have rekindled their interest in Treasury bonds.
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10.12.2013 13:36

Non-residents’ Government bond positions contract

Non-residents’ Government bondholdings have contracted sharply this year. Foreign investors have shown increased interest in longer Treasury bonds, however, and have been steadily moving further out the yield curve.
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29.11.2013 14:27

Gusts in the bond market

The bond market has been blowing to and fro for the last week or so, with strong turnover and dramatic changes in yields.
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14.11.2013 11:29

Greater likelihood of increased Treasury bond issuance

Yesterday’s Treasury bill auction held by Government Debt Management (GDM) met with an extremely tepid response, with the stock of outstanding bills shrinking by ISK 5.7 bn as a result.
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30.10.2013 11:42

MCI annual issuance target almost reached

There was good participation in Municipality Credit Iceland (MCI)’s bond auction yesterday, but only in its long-term LSS34 bond series.
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28.10.2013 13:04

Double MCI auction

Municipality Credit Iceland (MCI) is holding its monthly bond auction tomorrow, Tuesday 29 October.
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17.10.2013 12:01

GDM auction cancelled

On Tuesday, Government Debt Management (GDM) announced the cancellation of the Treasury bond auction scheduled for tomorrow.
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14.10.2013 14:16

Surprise turnaround in Treasury bill auction

The surge in demand in last Friday’s Treasury bill auction was quite a surprise, coming on the heels of the indifferent response to other recent auctions.
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11.10.2013 15:27

City of Reykjavík auction moderately successful

The last City of Reykjavík bond auction, held on Wednesday, was moderately successful, even though participation was much weaker than in last month’s auction and the final yield was higher.
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10.10.2013 14:49

Non-residents’ Treasury bill holdings radically dwindle

Non-residents have substantially reduced their króna assets in Treasury bills over the past months. They are now just over one quarter of what they were in May.
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09.10.2013 11:10

Treasury bill auction on Friday

Government Debt Management (GDM) will be holding a Treasury bill auction at 11:00 hrs on Friday.
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08.10.2013 11:50

Reykjavik municipal bond auction tomorrow

The City of Reykjavik will be holding its fifth bond auction on Wednesday
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02.10.2013 15:35

Drop in yields on bond market after proposed budget

There has been a drop in yields on the bond market this morning, both on nominal bonds and inflation-linked bonds.
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01.10.2013 13:03

Additional issuance of Treasury bonds of up to ISK 20 bn.

The issuance of Treasury bonds will be increased by up to ISK 20 bn. market value in the last quarter of the year, in relation to the initial annual prospect.
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