Market Information Monday 29 June 2020

A report published on Friday on the money growth and lending of the European Central Bank (ECB) shows that in May, companies borrowed € 51 billion from banks in Europe. A substantial volume according to historical standards, but less than the € 121 billion and € 73 billion respectively, which was borrowed in March and April. The annual growth rate of corporate lending in May was 7.3%, the highest rate since early 2009.

Top economist Isabel Schnabel of the European Central Bank (ECB) warns for negative inflation in the eurozone in the coming months. She expects inflation to fluctuate around 0% in the near future and she does not rule out inflation falling below zero as well. Inflation in the eurozone currently stands at 0.1%, more than a percentage point lower than a year ago.

The Agency of the General Treasury of the Ministry of Finance (DSTA) has announced that the Dutch state must borrow more than was expected two months ago. Required funding has increased to € 138.8 billion this year, up € 3 billion compared to the figure the Agency reported in April. At the beginning of this year, before the outbreak of the coronavirus, the Netherlands was expected to borrow 42.7 billion euros in 2020.

The 6M Euribor increased with 1 basis point to -0.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.19% 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.