Market Information Thursday 16 November 2023

The People’s Bank of China (PBOC) has announced that it will maintain the interest rate on its medium-term loans of €184 billion at 2.50%, resulting in a net injection of €76.2 billion into the banking system because of the expiration of loans amounting to €108 billion later this week. This marks the largest support measure in over six years, responding to ongoing economic challenges, particularly in the real estate sector. Despite positive indicators such as industrial production, concerns persist about the real estate market. China is also considering providing €127 billion in cheap loans for the struggling real estate sector. China aims for a growth target of 5% for the year despite global economic challenges, and potential policy changes are anticipated at the upcoming Communist Party top meeting.

In October, consumer prices in the United Kingdom rose less sharply than the previous month and slightly below economists’ expectations, according to data from the Office for National Statistics (ONS). On a yearly basis, prices increased by 4.6%, slightly below the anticipated 4.7%, compared to a 6.7% rise in the previous month. Month-on-month, prices remained stable after a 0.5% increase in September.

In September, exports in the eurozone experienced a significant decline, while imports fell even more sharply, according to data from Eurostat on Wednesday. Adjusted for calendar effects, exports decreased by 9.3% on a yearly basis, while imports dropped by 23.9%. As a result, there was a trade surplus of 10 billion euros, compared to a deficit of 36.6 billion euros in September 2022.

The 6M Euribor increased with 1 basis point to 4.10% compared to previous business day. The 10Y Swap increased with 4 basis points to 3.12% 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.