Market Information Thursday 20 March 2025

The EU plans to establish a €150bn rearmament fund for defence spending that excludes US, UK, and Turkey unless they sign defence pacts with Brussels, emphasizing a “Buy European” approach. This move aims to strengthen the European defence industry and reduce reliance on non-EU partners amidst concerns about dependability on the US. The proposal, which requires approval by a majority of EU states, would allow countries to spend 35% of the loans on products from select third countries like Norway and Ukraine.

Investors have shifted $22bn into short-term US government debt, seeking stability amid market volatility and concerns over Trump’s policies affecting economic growth and inflation. The appeal of short-term debt has grown due to attractive yields and its perceived safety compared to riskier assets such as equities and (junk) bonds.

Indonesian stocks fell nearly 4% amid economic concerns, including slowing consumer spending and costly government spending plans. The Jakarta Composite Index has declined 14.8% over the past year, exacerbated by weakening purchasing power, manufacturing decline, and pressure on the middle class due to lower employment. Fiscal challenges and potential interest rate decisions by Bank Indonesia add further uncertainty, prompting fears about future economic stability.

The 6M Euribor is unchanged at 2.42% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.68% 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.