Market Information Monday 3 June 2019

US President Donald Trump has announced in a tweet that the US will impose import duties on Mexican products. The import duties will initially amount to 5%, but if the Mexican government does not cooperate in combating illegal migration to the United States, these duties will gradually increase to 25% as per October 2019. The Mexican government reacted furiously to these measures. On Wednesday, a Mexican delegation will try to negotiate a solution in Washington.

Last Friday the yield on 10-year Dutch government bonds fell to -0.01%, the lowest level since the summer of 2016. The yield on German government bonds also fell to a historically low level. Due to the worldwide trade tensions, investors are transferring their funds into “safe havens”.

The German federal statistical office Destatis has published preliminary figures that show that inflation in Germany fell to 1.4% on an annual basis in May 2019. In April 2019, inflation was still at 2.0%. The decline was stronger than expected; analysts had anticipated inflation to decrease to 1.6% in May 2019.

The 6M Euribor is unchanged at -0.25% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.34% 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.