Market Information Friday 21 November 2025

The European Commission is encouraging EU member states to boost supplementary pension savings, similar to the substantial reserves found in the Netherlands. Brussels is reintroducing the pan-European personal pension product (PEPP) to combat poverty and inequality in Europe. By recommending automatic enrolment in pension schemes and removing fiscal limitations on PEPP, the Commission aims to enhance social security while unlocking economic funding sources. The need for transparency is addressed, ensuring EU citizens have comprehensive insights into their pension rights and expected benefits.

In October, the sale of existing homes in the U.S. rose by 1.2%, aided by lower mortgage rates, yet high home prices and rising unemployment continue to weigh on the market. Renewed Federal Reserve rate cuts led to lower mortgage rates, though further reductions remain uncertain. The lack of affordable housing is a major political issue, with propositions for a 50-year mortgage to increase affordability. The inventory of existing homes rose by 10.9% compared to a year earlier, while the median price also showed economic growth. First-time buyers constitute a larger share of sales, but their market impact is still below the desired 40% for a robust housing market.

Investors are exiting the yen and Japanese government bonds, driving borrowing costs to record highs, and increasing pressure on policymakers. The selloff is triggered by a stimulus package from Prime Minister Sanae Takaichi. The yen hits a low and bond yields reach record highs, posing difficult choices for policymakers. The yen’s decline is detached from typical US-Japan interest rate differentials. Insurers and foreign investors are withdrawing from long-term bonds. The Bank of Japan considers intervention, potentially weakening the yen further.

The 6M Euribor decreased with 1 basis point to 2.15% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.76% 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.