Market Information Wednesday 5 May 2021

Market Information Wednesday 5 May 2021

The yield on the Dutch ten-year government bond has increased recently. On Monday, the yield just closed under zero percent. Yesterday yields decreased again. This would mean the end of a negative interest period on the bond for almost two years. This is particularly good news for pension funds, as the low interest rates put pressure on their funding ratios.

In the first quarter of 2021, fewer companies went bankrupt than in the same quarter in 2020, according to figures from the Central Bureau of Statistics (CBS). The total number of bankruptcies is equal to 30,200, which is 9,000 fewer than last year. A possible cause for the difference between 2020 and 2021 is the government’s current measures to support companies.

A new study by the Bureau for Economic Policy Analysis (CPB) shows that on average Dutch households hold too little savings in the bank. A lot of savings are stuck in a pension fund or are invested in their own home. This makes financial setbacks more difficult to absorb. The advice given by Nibud to absorb financial setbacks is a buffer of EUR 3,500 to EUR 6,000. In practice, this buffer turns out to be less than EUR 2,500 for a quarter of Dutch households.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap decreased with 4 basis points to 0.10% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Tuesday 4 May 2021

Market Information Tuesday 4 May 2021

Industrial activity in the eurozone increased at a faster rate in April 2021. The manufacturing purchasing managers’ index (PMI) increased from 62.5 in March to 62.9 in April, the highest point ever recorded, according to Markit Economics. A preliminary measurement indicated 63.3 for April. An index score of over 50 indicates growth, while a figure below 50 indicates contraction.

The purchasing managers index for Dutch industry also reached a new record in April 2021. The purchasing managers index increased from 64.7 in March to 67.2 in April. “The unprecedented growth in production was driven by large increases in orders both domestically and internationally,” Nevi and Markit stated upon the release of the index.

Industrial activity growth in the United States in April has unexpectedly decreased, according to figures from the Institute for Supply Management (ISM). The ISM purchasing managers’ index decreased from 64.7 in March to 60.7 in April, while the market expected an increase to 65.0. The PMI manufacturing index published by Markit, however, show that the growth in activity increased in April. The index increased from 59.1 in March to 60.5 in April.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap is unchanged at 0.14% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 3 May 2021

Market Information Monday 3 May 2021

According to preliminary figures from Eurostat on Friday, consumer prices rose year-on-year by 1.6% in April. In March prices increased by 1.3% and in February by 0.9%. On a monthly basis, prices rose by 0.6% in April this year. Core inflation, an important indicator for the ECB, was 0.8% on an annual basis in April.

According to Eurostat, the unemployment rate was stable at 8.1% in March from a revised 8.2% in February. Economists had predicted an increase to 8.3%. In March 2020, the unemployment rate in the eurozone was 7.1%.

US consumer confidence in the economy rose even faster in April. On Friday, the University of Michigan indicated that the consumer confidence index rose to 88.3 in April from 84.9 in March. The preliminary figure assumed an index level of 86.5. Those surveyed were also more positive about the current state of the economy. This sub-index rose from 93.0 to 97.2.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.14% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 30 April 2021

Market Information Friday 30 April 2021

The US economy has grown by 6.4 percent in the first quarter of 2021 compared to the fourth quarter of 2020. This follows from figures published by the US Department of Commerce on Thursday. Economists had expected a growth of 6.5 percent. In the fourth quarter of 2020, the US economy grew by 4.3 percent on a quarterly basis.

Figures from the German statistics agency Destatis show that consumer prices in Germany increased further in April 2021. Consumer prices increased by 2.0 percent on an annual basis, while there was an increase of 0.7 percent on a monthly basis. In March 2021 and February 2021, prices increased by 1.7 percent and 1.3 percent respectively on an annual basis.

Selling prices in the Dutch industry increased by 6.8 percent in March 2021 compared to March 2020. This follows from figures from Statistics Netherlands on Friday. In February 2021, prices were 0.7 percent higher than a year before. On a monthly basis, prices increased by 2.0 percent in March 2021 compared to February 2021.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap increased with 4 basis points to 0.15% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 29 April 2021

Market Information Thursday 29 April 2021

Confidence in industry has grown rapidly among entrepreneurs. Statistics Netherlands (CBS) announced this morning that producer confidence in April is at the highest level in two years. The index that indicates confidence equals 6.5 in April versus 3.4 in March. The average for the past twenty years is 0.3.

Yesterday, the European Parliament approved the trade agreement with the United Kingdom. Parliament voted in favor of the Brexit deal with 660 votes and 5 votes against. In December 2020, the 27 EU member states already signed the agreement. However, extra time was required to work out the details.

Moderna, the American biotechnology company, is ramping up production capacity for its corona vaccine and expects to be able to make up to three billion doses of the vaccine next year. This is more than double the amount previously forecast. The company also stated, according to Reuters news agency, that 800 million to one billion doses will be delivered this year.

The 6M Euribor decreased with 1 basis point to -0.52% compared to previous business day. The 10Y Swap increased with 2 basis points to 0.11% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.