Market Information Wednesday 16 September 2026

The Dutch government will raise taxes by €6.9bn in 2027, largely through higher labour taxes and social security contributions, to help fund increased spending on defence and other priorities. Higher earners will bear the largest burden as the top income tax threshold is frozen at €78,426 and additional measures raise a further €750mn. A €1.5bn purchasing power package softens the impact but mainly redistributes income rather than offsets the broader tax increase.

The US 10 year Treasury yield has climbed above 5% for the first time since 2007, raising concerns that prolonged high borrowing costs could strain housing, commercial real estate and highly leveraged borrowers. Markets may absorb the move initially, but refinancing debt at 6% to 8% instead of 2% to 3% could pressure cash flows and credit quality over the next 12 to 18 months. Investors increasingly see the duration of elevated yields, rather than the 5% threshold itself, as the key risk for financial markets.

The Bank of Japan is expected to raise interest rates by 25 basis points to 1.25%, with 89% of economists surveyed anticipating a move as inflation reaches 1.9% and real wages rise 2.4%. A faster tightening cycle could support the yen and signal a shift away from Japan’s long era of ultra loose monetary policy. Markets are increasingly focused on the implications for global bond yields and currency markets, with 61% of respondents expecting the yen to trade between 155 and 160 against the dollar over the next month.

The 6M Euribor increased with 12 basis points to 2.94% compared to previous business day. The 10Y Swap increased with 3 basis points to 3.57% 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.