Market Information Monday 29 June 2026

Bond investors are increasingly looking beyond US markets, with analysts advocating for short to intermediate duration government bonds in developed markets where central banks remain tightly focused on inflation. The ECB raised rates 25 basis points to 2.25% on 11 June, its first hike since September 2023, while markets currently price a 78% probability of a Fed rate rise in December. European fixed income is seen as attractive, pointing to lower risk and higher yields relative to US equivalents.

China escalated its export control campaign against Japan, blacklisting four government defence research institutes and tightening restrictions on dozens of other entities, including units of Mitsubishi Electric and Mitsubishi Heavy Industries. The measures, which take effect immediately, expand a pressure campaign launched in January targeting dual-use goods and rare earth minerals. Economists estimate a sustained one-year cutoff of Chinese rare earth exports could reduce Japan’s GDP by around 1.3%, equivalent to roughly 43 billion dollars.

Extreme heat and severe weather are emerging as a significant threat to AI data centres, with Zurich Insurance reporting that weather events now account for a third of losses in its US data centre builders’ risk portfolio. Some 79% of global data centre capacity faces elevated climate risks, as operators increasingly move to frontier markets such as West Texas and Ohio where exposure to tornadoes and hail is higher. Cooling already accounts for 40% of data centre energy use, a share that rises during heatwaves precisely when grid capacity is most constrained.

The 6M Euribor is unchanged at 2.61% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.91% 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.