Market Information Thursday 22 January 2026

Trump abruptly suspended planned tariffs on Europe after markets were unsettled by threats of 10 percent duties from February rising to 25 percent by June. The shift followed a tentative NATO backed framework, easing pressure after the EU weighed retaliatory measures of up to $108bn. Trade relations remain uncertain as legal challenges to US tariffs await court rulings.

Japan’s bond market jolted as 30-year yields jumped 0.25 percentage points in a day and 40-year yields crossed 4 percent, reflecting fears of fiscal loosening amid an election call. Foreign investors now account for 53 percent of demand for long dated debt, up from 22 percent pre pandemic, while inflation has exceeded the 2 percent target for almost four years. With the policy rate at 0.75 percent and markets pricing a move toward 1 to 2.5 percent, rising yields are colliding with expansionary fiscal plans and debt at 130 percent of GDP.

US Supreme Court justices signalled scepticism over efforts to remove a Federal Reserve governor, warning the move could undermine central bank independence and unsettle markets. In a hearing lasting just under two hours, judges from across the bench highlighted risks to monetary credibility and investor confidence. A ruling favouring presidential control could raise policy uncertainty and market volatility.

The 6M Euribor decreased with 1 basis point to 2.15% compared to previous business day. The 10Y Swap increased with 3 basis points 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.