Riba

Riksbank Futures

The monetary policy of the Riksbank (Central Bank of Sweden) is of great significance to interest rates in capital markets.

Since the repo rate is the principal interest rate employed by Riksbanken, market players carefully monitor changes in this rate and the signals given by Riksbanken. Accordingly, NASDAQ OMX Stockholm now offer a cash-settled futures contract based on the Riksbank’s repo rate.

Yesterdays volume

Date
Volume

Riksbank Futures Graph

The graph above is based on market prices for each Riksbank futures expiration month. Each date on the x-axis refer to the IMM date in each expiration month. The horizontal graph line between two IMM dates visualizes the markets view on the repo rate level between two IMM dates.

Riksbank Futures Contracts

Riksbank Futures Watch

RIBA Market Watch 2009-09-29

The RIBA market is developing steadily. Open interest increases week by week and reached 116.500 contracts in week 39
We have also noticed that the number of active RIBA clearing accunts increases steadily. Media e.g. newspapers also from time to time refere to the prices in the RIBA contracts when reporting the market view on the central bank policy rates.

The current RIBA curve can be interpreted either as the market expect a 25 bp hike in the February meeting or a 50 bp hike in the April meeting.

Comparing with the Swedish government repo rate prognosis the RIBA market is way more bullish on the recovery of the Swedish economy. The Government has 0,50% target for the repo rate att year end 2010. The RIBA market is trading the DEC10 contract (IMMSEP-IMMDEC) @ 1.45%.

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