It appears Swedish banks are falling over themselves to get rid of excess cash. We noted Swedish banks refusing to open bank accounts in September, and warned in October of a “giant wave of money” heading into Sweden thanks to the Riksbank-ECB policy divergence, and now, Swedish banks are paying each other to take cash off their balance sheets into year-end, as 1-week STIBOR crashes to -1.792%.
In other words, “reverse window-dressing” as no one wants to show a negative carry asset on their balance sheet.
It is clear that SHB has the most “excess cash” to dump… willing to pay a massive 5.05% to someone to “take my money”
Or put another way…It is these kind of nonsense disclocations that extreme monetary policy-makers create with their unintended consequences. As we previously concluded,
And so, we’re now beginning to see the results of the beggar-thy-neighbor monetary insanity that grips DM central banks. It’s a never-ending race to the bottom and now that everyone is moving further and further into NIRP, it’s not even clear that there is a bottom. After all, even if negative rates finally do make their way to household deposits causing rational actors to simply withdraw their money, the monetary authorities can always just ban cash, which would effectively obliterate the idea of a “lower bound.”
full article at source:http://www.zerohedge.com/news/2015-12-22/somethingh-crazy-going-swedish-money-markets