Market Information Friday 28 May 2021

Several U.S. sources report that President Biden will release a 2022 budget proposal today of USD 6,000 billion. This would be the largest budget proposal since World War II. The US budget would even increase to USD 8,200 billion in 2031. To finance the increase in spending, Biden wants to impose higher taxes on companies and high-earners, among other things. In addition, the U.S. government will have to borrow heavily and, based on the proposed budget, the government deficit will increase to USD 1,800 billion in 2022.

The U.S. labor market shows signs of recovery; initial applications for unemployment benefits fell again and also more substantially than anticipated. The U.S. Department of Labor released figures showing that the number of new applications came in at 406,000, versus 425,000 previously expected. The four-week moving average was 458,700, down 46,000 from a week earlier.

Output prices of Dutch industry rose by 11.8% in April this year compared to a year earlier, according to figures published today by Statistics Netherlands. In March and February annual growth figures were 6.8% and 0.7% respectively. The preceding eleven months showed decreasing prices. The fluctuations in output prices can largely be explained by fluctuations in the price of North Sea Brent crude oil. In April 2021, the price of a barrel was EUR 54, up 77% year-on-year.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap increased with 4 basis points to 0.14% 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.