Market Information Thursday 12 November 2020

The second issue of Eurobonds by the European Commission has been a success, according to budget commissioner Johannes Hahn. The bonds with a notional value of EUR 14 billion have been subscribed for EUR 175 billion by investors. The issue is part of a temporary EU credit program to prevent mass layoffs (SURE). In May this year, the Ministers of Finance agreed that the European Commission will issue Eurobonds. Last month, these Eurobonds were issued for the first time, with EUR 233 billion subscribed by investors. The proceeds will be lent on the same favourable terms to interested Member States in order to alleviate the costs of national regulations related to the coronavirus.

The progress made in the development of corona vaccines offers perspectives. However, according to President Klaas Knot of De Nederlandse Bank (DNB), this does not immediately mean that the corona crisis will come to an end. Upward economic development will not materialize overnight. The economic outlook for 2021 will remain uncertain for a long time to come.

In October, 171 companies were declared bankrupt, which is the lowest number since the end of 1999, based on figures from Statistics Netherlands (CBS) published this morning. CBS speaks of a “remarkably low level”. In October, there were especially many bankruptcies in the trade, construction and financial services sector.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap decreased with 1 basis point 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.