Market Information Tuesday 26 March 2024

The United States saw a decline in the sale of new single-family homes in February compared to the previous month, according to data from the U.S. Department of Commerce. The number of newly sold single-family homes dropped by 0.3 percent to 662,000 units, slightly lower than the previously reported figure of 664,000 units for the preceding month. Economists had anticipated an increase to 675,000 units for February. However, on a year-over-year basis, home sales rose by 5.9 percent. The average selling price stood at $485,000 last month.

The People’s Bank of China (PBOC) lowered the yuan’s reference rate more than expected, aiming to achieve certain objectives. Firstly, the central bank aims to avoid being labeled a currency manipulator, and secondly, a stronger yuan benefits foreign investors by increasing the value of their Chinese assets. This move seeks to reassure foreign investors amid significant outflows of foreign capital in recent months. The Japanese yen rebounded, following the historic interest rate hike by the Bank of Japan last week. Traders anticipate that Japan’s interest rates will remain low for some time, maintaining significant interest rate differentials with the United States and Europe.

Oil prices closed higher on Monday due to ongoing geopolitical tensions in the Middle East and the prolonged war between Russia and Ukraine. Oil futures decreased for the third consecutive session on Friday, limiting the gains for both WTI and Brent. The U.S. urged Ukraine last week to halt drone attacks on Russian energy infrastructure, fearing that it could spike global oil prices and provoke retaliations. Ukraine denied the attacks, which reportedly took approximately 7 percent of Russian refining capacity offline.

The 6M Euribor decreased with 3 basis points to 3.87% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.66% 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.