Market Information Monday 15 March 2021

The US government bond market experienced some turbulence on Friday, sending a key measure of long-term borrowing costs to the highest level since last February. Yields on the benchmark 10-year note jumped to 1.63%, having traded 1.53% the day before, and remained high around that level throughout the day. Treasuries have been under pressure since the start of the year as investors anticipate higher inflation and growth in the coming months following the $1.9 trillion fiscal injection of the Biden administration.

The value of mergers and acquisitions across the investment industry almost tripled last year, reaching its highest level since the global financial crisis. Intense competitive pressures stimulated the recent surge of consolidation activity. The database held by Piper Sandler containing deals and pricing information dating back to the 1990s, confirm that announced M&A deals involving asset and wealth managers rose from $13.6 billion in 2019 to $38.9 billion last year.

The British exit from the European Union in January triggered a major downturn in mutual trade. British exporters, in particular, sold far fewer products to European customers in the first month of this year. According to the British Office for National Statistics (ONS) exports to the EU fell by more than 40%. These are the first official figures following the end of the transition period.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap increased with 4 basis points to 0.04% 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.