Currency Speculators Leave Danish Bond Market in Liquidity Limbo
- SEB predicts Danish bonds face long path to better volumes
- Danske is optimistic demand will return given current pricing
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Denmark may have won the fight against speculators betting its euro peg won’t hold. But the country’s bonds will continue to suffer for a while yet.
That’s according to SEB AB, which predicts investors will demand a premium for Danish bonds, both in the short and medium term. It follows an eight-month hiatus in government debt issuance pushed through to deter speculators from hoarding krone assets and endangering AAA-rated Denmark’s euro peg.