Market Information Monday 07 September 2026

Global bond yields are climbing to multi-year highs, with Germany’s 10-year yield at its highest since 2011, UK gilts at a post-2008 peak and US Treasuries touching levels last seen in late 2023, driven by heavy government debt issuance, oil-driven inflation concerns and expectations of prolonged monetary tightening. Governments face the most immediate pressure, with France singled out among developed markets for its combination of large deficits, elevated debt and political gridlock, while Japan’s debt service costs are estimated to exceed 25% of government expenditure in 2026. Leveraged companies, commercial real estate and lower-income consumers are among the most exposed, as Deutsche Bank estimates 10-year Treasury yields could reach 5.5% over the next year.

Sugar prices surged 21.5% in August, their strongest monthly gain since 2010, outpacing the S&P 500 with a year-to-date gain of around 20% as supply concerns mount across major producing regions. A summer heatwave has cut EU sugar beet production by an estimated 19%, while El Niño threatens harvests in Brazil, India and Thailand, which together account for roughly 70% of global exports. With oil above 90 dollars a barrel incentivising Brazilian mills to divert cane into ethanol and India entering the market as a buyer for the first time since 2018, Citi projects a global supply deficit of 1.3 million metric tons and has named sugar its highest-conviction bullish agricultural trade.

Land purchases for US data centres reached around 6 billion dollars in the first half of 2026, a 79% increase on last year, as the AI buildout transforms rural property markets and drives commercial land values to as high as 4.4 million dollars per acre in some Virginia locations. The surge is fuelling a growing backlash, with up to nine states considering moratoriums on new data centre development and communities raising concerns over rising electricity costs, water use and the loss of farmland. Investment banks including Morgan Stanley and Wells Fargo are flagging political resistance as a material risk to future growth, with data centre politics identified as a key factor heading into November’s midterm elections.

The 6M Euribor increased with 2 basis points to 2.79% compared to previous business day. The 10Y Swap decreased with 2 basis points to 3.36% 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.