Nordea
May 19, 2026
EURDKK Impact On Danish Bond Valuations
Rates StrategyRates Govt BondsFXRates CreditFinancials
Nordea analyzes the upcoming auction of DGB28 and DGB35 bonds against the backdrop of a high EURDKK rate and stable rate hike expectations. The report suggests DGB35 is fairly valued relative to mortgage bonds, while DGB28 offers a 17bp pickup to German peers.
Key Takeaways
- 1.DGB28 and DGB35 bonds are scheduled for auction; EURDKK is high but the market has not priced in an independent Danish rate hike.
- 2.DGB28 offers a pickup of approximately 17bp against German Bunds (DBR) when using a 3-month FX forward to EUR.
- 3.DGB35 is considered reasonably priced relative to Danish callable mortgage bonds, with an OASGOV spread of approximately 60bp.
Table of Contents
- DGB28 and DGB35 up for auction Wednesday
- Never cry wolf
- Pickup to peers
- Disclaimer
- Risk information
- Conflicts of interest
- Distribution restrictions
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Anders Skytte Aalund
Securities
DGB28 (DK 2 15Nov28)DGB35 (DK 2.25 15Nov35)NYK 4 01Oct56DBR
Themes
Danish-Euro Interest Rate ConvergenceForeign Demand for Sovereign Debt
Regions
EuropeDenmarkGermany