Market Information Friday 26 September 2025

Global debt reached a record high of $337.7 trillion in the second quarter, driven by easing financial conditions, a weaker U.S. dollar, and more relaxed central bank policies. The increase resembles the debt surge seen during the COVID-19 pandemic. Countries like China, France, and the U.S. saw significant rises in debt levels. Despite a global decrease in debt-to-GDP ratios, emerging markets set new records, highlighting rising fiscal strains amid geopolitical tensions and military spending. The increasing debt levels stresses potential pressures for central banks, especially regarding the sustainability of government debt and the impact of bond market reactions.

A wide range of European companies announced hiring freezes or layoffs due to challenging economic conditions, impacted by U.S. tariffs and weak product demand. Highlights include Bosch cutting 13,000 jobs, Daimler Truck reducing positions in the US, Mexico, and Germany, and Volvo Cars laying off staff due to high costs and reduced demand. In banking, Commerzbank and HSBC announced substantial job cuts. Energy sector layoffs include OMV planning global reductions. In retail, Auchan and Burberry announced significant staff reductions. These reflect the broader struggle faced by companies amid economic uncertainties.

The U.S. dollar strengthened against major currencies like the euro and yen due to unexpectedly strong GDP growth in the second quarter, which may limit future rate cuts by the Federal Reserve. GDP grew by 3.8%, revised up from 3.3%. Investor expectations are shifting towards fewer rate cuts this year, impacting Wall Street indices, which declined. The yields on U.S. Treasuries rose, reflecting belief in continued economic strength. While the Fed remains cautious on rate reduction due to mixed economic signals, the dollar continues to rise against currencies like the Swiss franc, as international policies, including those of Donald Trump, affect global outlooks.

The 6M Euribor is unchanged at 2.10% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.73% 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.