Market Information Thursday 3 July 2025

UK markets tumbled as investor concerns over fiscal stability intensified, triggered by political uncertainty surrounding the finance chief’s future. Ten-year gilt yields surged 16 basis points to 4.61%, while 30-year yields climbed over 20 basis points, and the pound sank below $1.36. The sharp reaction echoes past selloffs tied to skepticism over the country’s debt trajectory and economic outlook.

Emerging market debt issuance surged to over $190 billion in the first half of 2025, up 20% year-on-year and on track to surpass last year’s record. Middle Eastern issuers led the wave, accounting for over 40% of regional activity amid resilient investor appetite despite geopolitical tensions. A gradual shift away from the U.S. dollar emerged, with more deals in euros, yen, and yuan signaling early signs of de-dollarization.

U.S. private payrolls fell by 33,000 in June, marking the first decline in over two years amid economic uncertainty and slowing job growth. Despite this drop, layoffs remained low, with planned job cuts falling 49% from May and second-quarter cuts down 50% from the first quarter. Hiring slowed across sectors, with 5.5 million hires reported in May and job openings slightly outpacing the number of unemployed.

The 6M Euribor is unchanged at 2.05% compared to previous business day. The 10Y Swap increased with 5 basis points to 2.62% 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.