Market Information Tuesday 27 January 2026

India and the European Union finalised a trade deal after nearly two decades of talks. Prime Minister Narendra Modi said the pact represents about 25% of global GDP and one third of global trade, and will open India’s market to freer trade with the 27 nation EU. Bilateral trade was $136.5 billion in the fiscal year through March 2025. Narendra Modi and Ursula von der Leyen are due to share details at an India EU summit in New Delhi.

Bond investors are edging into riskier positions as the Federal Open Market Committee is expected to hold rates at 3.50% to 3.75%. Futures imply about 44 basis points of easing in 2026, down from roughly 53 two weeks earlier. Managers are extending duration and selectively buying corporate credit, but valuations look rich. U.S. investment grade spreads were about 73 basis points over Treasuries, near the tightest levels since the late 1990s.

UK inflation expectations rose to a three-month high in Citi and YouGov’s January survey. One-year expectations increased to 3.8% from 3.6%, while longer term expectations climbed to 4.1% from 3.8%. The move followed December consumer price inflation rising to 3.4% from 3.2% in November. Bank of England governor Andrew Bailey expects inflation near 2% by April or May, yet wage concerns persist. Markets price a quarter point BoE cut by June.

The 6M Euribor increased with 1 basis point to 2.16% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.89% 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.