Market Information Monday 14 October 2024

U.S. Treasury’s economic diplomat Jay Shambaugh urged the IMF and multilateral development banks to develop new short-term liquidity support mechanisms for low- and middle-income countries facing debt crises. He emphasized the need for a coordinated financing package that includes bilateral, multilateral, and private sector contributions, while criticizing China’s manufacturing subsidies, which he believes could harm global development paths for other countries. Shambaugh highlighted the importance of innovative solutions in international finance to ensure sustainable development.

Ecopetrol SA is utilizing a loan from Sumitomo Mitsui Banking Corporation to pay down part of a $1 billion loan due in 2030 after postponing a $1.75 billion bond sale intended for a debt buyback. The decision to delay the bond issuance follows a probe by Colombia’s electoral council into campaign finance violations linked to President Gustavo Petro and Ecopetrol’s CEO. Despite the political scrutiny, analysts believe Ecopetrol remains a strong credit and may return to the market with more favorable terms.

Toronto-Dominion Bank’s shares fell nearly 10% over two days after being fined $3.1 billion for money laundering in its U.S. branches, leading to a cap on its U.S. retail banking assets. Analysts warn that the regulatory restrictions could limit the bank’s earnings, similar to Wells Fargo’s struggles since 2018. The stock reached its lowest level since August, marking its biggest two-day decline since the COVID-19 crash in March 2020.

The 6M Euribor increased with 1 basis point to 3.06% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.47% 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.