Market Information Monday 11 September 2023

The recent UK renewable energy auction failed to attract bids for an offshore wind farm. Last year, the UK’s annual renewable energy auction secured 11 gigawatts of projects, primarily offshore wind farms. However, this year’s auction yielded only 3.7 gigawatts, with no offshore wind projects, due to rising construction costs caused by inflation, increasing interest rates, and disruptions in the supply chain. Te failure to attract bids underscores the challenge of balancing renewable energy goals with realistic costs. Companies globally are facing project reconsiderations due to increased costs, urging the need for pricing adjustments in auctions.

In an unexpected turn of events, French industrial production saw a rise in July, as reported by the French statistical agency Insee. Production increased by 0.8% on a month-to-month basis, contrary to economists’ expectations of a 0.1% decline. In June, production experienced a 0.9% decrease. The manufacturing sector witnessed a production increase of 0.7% in July, following a 1.1% contraction in June.

According to final data from the German statistical office Destatis, German inflation in August decreased in line with previous estimates. The inflation rate stood at 6.1% on a year-on-year basis in August, down from 6.2% in July and 6.4% in June. Prices increased by 0.3% in August compared to July.

The 6M Euribor increased with 1 basis point to 3.94% compared to previous business day. The 10Y Swap is unchanged at 3.16% 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.