Republic of Finland Bond Auction

Nordea recommends buying Finnish government bonds at the upcoming February 17th auction as they offer value relative to Austria. While Finland's unemployment is high, recent Q4 GDP data suggests an economic recovery is underway.

Key Takeaways

• 1.Finland will auction two bond lines on February 17th: the 10-year 09/35 (expected last tap) and the recently launched April 2041 line.
• 2.Finnish government bonds (RFGB) have cheapened significantly relative to Austrian peers (RAGB), presenting a 'buy' opportunity or switch from semi-core markets.
• 3.Finland's economy is recovering with 0.6% GDP growth in Q4, but faces a unique 'labor market paradox' where unemployment hit a record 10.7% due to rising labor supply and reforms.

Table of Contents

• Bond auction from Republic of Finland on 17 February
• Underperformance vs Austria: Time to dip the toes
• Finland's Economic Recovery and Labor Market Paradox
• Disclaimer
• Risk information
• Conflicts of interest
• Distribution restrictions

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