Market Information Thursday 6 February 2025

Oil prices fell as fears of a US-China trade war impacting global growth overshadowed Trump’s move to increase economic pressure on Iran. West Texas Intermediate dropped around 1% to $72 per barrel, while US crude inventories saw their biggest rise in a year. Despite market volatility driven by tariffs and sanctions, analysts suggest potential supply disruptions could still reverse the trend.

Interest in UK government bond futures has surged, with outstanding contracts nearly tripling in two years due to market volatility and investor concerns over UK debt sustainability. Gilt yields hit a 25-year high before retreating as investors sought safety amid global equity market shocks. Traders are now positioning for potential Bank of England rate cuts, with capital markets pricing in three to four reductions this year.

Kenya’s central bank cut its benchmark interest rate to 10.75% from 11.25% to support economic growth, as inflation remains low and stable. The decision comes amid a slowing economy, with growth estimated at 4.6% in 2024 but expected to rebound to 5.4% in 2025. Despite stable foreign exchange reserves and strong investor inflows, Kenya faces significant external debt obligations, requiring $4.56 billion for payments by June.

The 6M Euribor decreased with 6 basis points to 2.48% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.31% 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.