Market Information Friday 12 December 2025

Interest rates, including Dutch ten-year government bonds, have risen globally, driven partly by shifting expectations of fewer interest rate cuts and potential rate hikes by central banks such as those in Japan, Australia, and potentially the eurozone. In the Netherlands, the 10 year government rate exceeded 3% for the first time in a while. These higher capital market rates increase costs for governments issuing bonds and affect interest rates on loans for businesses and consumers. Additional factors such as increased issuance of government debt and changes in the Dutch pension sector also influence interest rates. The Bank for International Settlements highlighted a decline in the convenience yield for government bonds.

Bulgarian Prime Minister Rosen Zhelyazkov announced the resignation of his government amid widespread protests over economic policies and corruption, minutes before a scheduled no-confidence vote. This decision comes shortly before Bulgaria’s planned entry into the euro zone on January 1. Despite withdrawing the 2026 budget plan to quell unrest, demonstrations against government arrogance and policy attitudes persist. Opposition leader Asen Vassilev views the resignation as a step towards normalizing Bulgaria and calls for fair elections. President Rumen Radev, who supported the government’s resignation, will now initiate the formation of a new government or appoint an interim one if necessary, pending new elections.

Germany’s population is projected to decrease by nearly 10 million to about 75 million by 2070 due to smaller succeeding generations following the baby boomers. The latest forecasts expect that by 2035, one in four Germans will be over 67. This demographic shift is causing increasing pressure on Germany’s social systems, with the ratio of pensioners to workers potentially rising significantly by 2070. Germany, alongside Italy, ranks as one of Europe’s most aged countries. The forecasts coincide with labour shortages and political tensions over immigration, contributing to the rise of the Alternative for Germany party in polls. Only scenarios involving high immigration and increased birth rates show potential for population growth.

The 6M Euribor is unchanged at 2.17% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.89% 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.