Market information Friday June 5th 2015

Although US GDP was 0.7% lower in the first quarter of 2015 than in 2014, the US jobs market has grown in May. The number of nonfarm payrolls increased by 225,000 jobs last month, after an increase of 223,000 in April. Unemployment is expected to remain stable at 5.4%, the lowest level in seven years.

According to the National Institute for Family Finance Information, a quarter of the 35-55 year old Dutch population experienced a decline in salary of 15% to 30% over the past three years. The fall in income is mainly caused by unemployment, disability or a new job with a lower salary.

The yield on 10-year German government bonds doubled from 0.49% to 0.99% in the past four days, whereas it was 0.07% in April. The yield on Dutch 10-year government bonds nearly doubled to 1.17% as well. The rapidly increasing yields come unexpectedly because the ECB is buying EUR 60 billion worth of bonds every month. ECB-president Draghi stated that markets have to get used to the increased volatility.

The 6M Euribor remained unchanged at 0.05%. The 10Y Swap decreased to 1.15%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.