Market information Monday October 26th 2015

Last Friday, China has lowered its main interest rate to stimulate the economy. With a reduction of 25 basis points, the interest rate notes 4.35% according to Bloomberg. This is the 5th time this year the Chinese government lowered its key interest rate while the last increase took place more than four years ago.

About 25% of all the government bonds in the Eurozone currently have a negative yield, reports Bloomberg. The speech of ECB president Mario Draghi last Thursday has decreased the interest rates on the bond market again. Draghi hinted that an extension of the buy-back program may be necessary. Never before so many government bonds had a negative return.

Manufacturers confidence level in the Netherlands fell in October, reports Statics Netherlands. The confidence indicator fell from 3.8 in September to 2.4 in October. The reason given is the reduced positivism of entrepreneurs on their order books and stocks. With 2.4 the manufacturer confidence in October is still well above the 20 year average of 0.4.

The 6M Euribor remained unchanged at 0.02%. The 10Y Swap decreased with 1 bp to 0.89%.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.