Market Information Monday 22 March 2021

The UK public finances deteriorated further in February as spending on Covid-19 measures continued to grow while tax receipts fell. According to figures published on Friday by the Office for National Statistics (ONS), the UK government required £19 billion to bridge the gap, which was lower than the forecasted £21 billion. This is the highest February figure since measurement began in 1993. Tax receipts fell £1.5billion last month compared with the same month last year as covid-19 restrictions resulted in businesses remaining closed and limited consumer spending.

The US central bank has announced that capital rules for banks will be tightened. Since the start of the pandemic expire capital rules have been relaxed. The decision made by the federal reserve could disappoint banks, who have been campaigning for an extension of the capital relief. Capital rules were eased last year in a temporary change to the Supplementary Leverage Ratio (SLR) and have been the focus of an intense political battle in recent weeks.

Last week, oil prices suffered their biggest weekly fall since October as signs of flagging demand in key markets abruptly halted a vigorous rally. International benchmark Brent crude ended the week down almost 7%, settling at $64.53 a barrel. West Texas Intermediate fell by a similar margin to $61.42 a barrel. The slide put the brakes on an almost unbroken rally this year. Brent and WTI have climbed more than 60% since early November as the world has begun to reopen from pandemic-induced lockdowns.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.06% 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.