Market Information Tuesday 11 June 2024

French President Emmanuel Macron’s snap election strategy to counter Marine Le Pen’s ascent has unsettled investors, leading to a sharp sell-off in national assets. On Monday, the yield on French 10-year bonds rose to 3.19%, pushing the spread over safer German bonds to 54 basis points. Consequently, the euro dropped to a monthly low of 1.0733 USD, and the CAC 40 index fell by 2.4%. Amidst this financial turmoil, France faces fiscal challenges, due to worsening growth and tax revenues, prompting S&P to downgrade its credit rating from AA to AA- on May 31.

New EU requirements regarding capital and transparency are leading to the banning of most stablecoins, including USDT, which dominates 70% of the 160 billion USD stablecoin market. This could severely disrupt European cryptocurrency trading, as the rest of the world continues using USDT, causing liquidity and ecosystem problems, according to analysis firm Steno Research. Tether, previously banned in New York, invested billions in risky corporate bonds and cryptocurrencies, contrary to investor expectations.

Egyptian inflation slowed to its lowest rate in 18 months, despite a significant currency devaluation and an unprecedented hike in the price of subsidized bread. Urban consumer prices in the North African nation rose by 28.1% annually in May, down from 32.5% in April, according to the state statistics agency CAPMAS on Monday. Inflation was below what economists had anticipated. The deceleration was attributed to a 3% monthly drop in food and beverage costs, which are the major contributors to the inflation basket. Year-over-year, prices climbed 31% in May, compared to a rise of 40.5% the previous month.

The 6M Euribor is unchanged at 3.74% compared to previous business day. The 10Y Swap increased with 8 basis points to 2.92% 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.