Market Information Thursday 5 October 2023

Corporate loans and mortgages are rising in price. This is because investors are demanding higher fees on government loans. The rise in interest rates is causing stocks and the euro to struggle. In Germany and Italy, yields on 10-year government bonds exceeded 3% and 5% for the first time in 12 years, respectively. In America, 30-year yields rose above 5% for the first time since 2007. In addition, the main 30-year fixed-rate mortgage rose to 7.53%. This has not happened since the year 2000. The main reason for these increases is that investors increasingly believe that the European Central Bank and the Federal Reserve are keeping rates high in order to push inflation back to 2.0%.

Africa’s economic growth is being held back by the poor performance of South Africa and Nigeria. This is partly due to the recent series of power changes and high debt burdens. Sub-Saharan Africa’s economic growth slumps to 2.5% in 2023, down 1.1% from the previous year. The World Bank stated this in a biennial report, Africa’s Pulse. Every year, 10 million new Africans enter the labor market, while based on current growth there is only room for 3 million new jobs.

Statistics from Destatis, a German statistics agency, showed that German exports fell more than expected in the month of August. At the same time, imports also unexpectedly declined. Economists predicted a contraction in exports of 1.0%, this ended up being 1.2%. Imports fell against expectations by 0.4%.

The 6M Euribor decreased with 1 basis point to 4.13% compared to previous business day. The 10Y Swap decreased with 4 basis points to 3.48% 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.