Market Information Friday 25 June 2021

The confidence among German businesses, measured by the Ifo index, rose sharply in June. The index rose from 99.2 in May to 101.8 in June. The index significantly exceeded a 100.6 forecast made by several analysts. The rise contrasts with the fear of the delta variant of the coronavirus that the Robert Koch Institute is trying to alert the German population about.

The Bank of England (BoE) has again left its policy rate and size of the buyback program untouched. Consequently, the policy rate remains at 0.1% and the size of the purchase program remains at GBP 895 billion. The British pound did show a slight decline compared to the U.S. dollar after the publication of the report. Analysts believe that this is a reaction to the fact that the report expressed the expectation that British inflation will exceed 3% later this year.

In a recent report, the Dutch Central Bank (DNB) expressed its concerns about the entry of so-called “Big Techs” into the financial sector. The bank urges to monitor large suppliers of cloud solutions and payment services better and to have the various regulatory authorities, also on a European level, cooperate better. DNB has concerns about privacy, market power and fair competition, mainly due to concentration risks.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.10% 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.