Market Information Tuesday 24 September 2024

According to a New York Fed report, liquidity in the $27 trillion U.S. Treasury market, the world’s largest government bond market, has returned to levels seen before the Federal Reserve’s 2022 interest rate hikes. Liquidity had previously declined as bond prices fluctuated sharply in response to these rate increases, aimed at controlling inflation. Michael Fleming, researcher at the New York Fed, noted that trading conditions have now improved to levels last observed before the monetary policy tightening cycle.

Oil prices stabilized after their largest weekly gain since April. Brent was little changed, and West Texas Intermediate hovered around $71 a barrel. The strengthening dollar, boosted by weak European economic data, made dollar-priced commodities less attractive. Despite optimism about potential US rate cuts driving a 9% rally in Brent, concerns about declining fuel demand have limited further gains.

Gold reached a new all-time high ahead of upcoming US economic data potentially indicating future Federal Reserve rate cuts. Gold peaked at $2,631.40 an ounce, surpassing the previous record. This surge follows the Fed’s recent rate reduction and is part of a strong year for gold. A 27% rally this year has been driven by central bank purchases and safe-haven demand amid ongoing Middle Eastern and Ukrainian conflicts.

The 6M Euribor decreased with 3 basis points to 3.24% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.45% 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.