Market Information Monday 11 May 2020

The finance ministers of the nineteen euro countries agreed on Friday on the exact conditions under which their governments can turn to the European emergency fund ESM for funding. Countries are allowed to borrow up to 2% of their gross domestic product (GDP) from the ESM for ‘direct and indirect healthcare costs’ as a result of the corona pandemic. Normally, there are strict conditions for receiving the cheap credit from the emergency fund. However, the Eurogroup has decided not to impose such conditions this time because this is a health crisis and not financial mismanagement.

The official job report from the United States Department of labour shows that unemployment rose to 14.7 percent in April. This is the highest level since the Great Depression in the 1930s. Twenty million jobs were lost in April. According to finance minister Steven Mnuchin and a high-ranking advisor to Donald Trump, the US will have to prepare for an unemployment level of perhaps 25%.

Wholesale stocks in the United States fell 0.8 percent in March compared to the previous month, according to the United States Department of Commerce. A one percent decrease was reported in a preliminary estimate.

The 6M Euribor increased with 3 basis points to -0.11% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.12% 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.