There is not enough support for Biden’s ‘Build Back Better plan’. It seems that one of the election promises will not be fulfilled by US President Joe Biden. The $1750 billion investment plan to combat climate change is not getting enough support. The mounting US government debt in relation to the fight against the pandemic and rising inflation are arguments against the the investment plan.
China’s central bank, the People’s Bank of China (PBOC), has cut interest rates for the first time since April last year. The rate for the least risky group, the prime rate, falls by 5 basis points from 3.85% to 3.8%. The decline means that Chinese companies can borrow at a cheaper rate. Earlier this month, the PBOC came to terms with banks when the amount of cash that banks are required to keep in reserve was reduced.
The currency markets are getting ready for the Christmas season. From a fundamental point of view, the central banks have already played their cards for this year. A limited number of figures will be announced this week, including growth figures from the US and UK. Currency experts indicate that the divergence between the Fed and ECB regarding interest rate hikes is putting pressure on the Euro. Over the past week, the euro fell by half a percent against the dollar.
The 6M Euribor is unchanged at -0.55% compared to previous business day. The 10Y Swap decreased with 2 basis points 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.
Managed by Sluijmer Multimedia and hosted by True.