Market Information Friday 29 May 2026

The first inflation report under new Federal Reserve chair Kevin Warsh shows consumer price pressures remain elevated. The personal consumption expenditures price index rose 3.8 percent year on year in April, the highest level in nearly three years, driven mainly by higher energy costs linked to the Iran war. Income growth lagged inflation, savings fell sharply and rate cut expectations have weakened, with markets increasingly pricing the risk of a rate hike later in the year.

The Russian rouble has climbed to a more than three year high, driven by strong energy export revenues, high interest rates and limited imports due to sanctions and weak domestic demand. While higher oil earnings support revenues, the stronger currency is undermining competitiveness in key non-energy exports such as grain, metals and fertilisers. Officials warn the rouble’s strength is becoming a growing risk to the federal budget as the war continues.

Seven major central banks and 40 financial institutions have successfully tested Project Agorá, a blockchain-based prototype for near-instant cross-border payments. Led by the Bank for International Settlements and the International Institute of Finance, the system tokenises commercial bank deposits and settles transactions almost instantly using tokenised central bank reserves. Tests were synthetic but maintained privacy and anti-money laundering controls. Participants plan to progress to real cash transfers, without changing existing legal frameworks.

The 6M Euribor increased with 4 basis points to 2.49% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.99% 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.