Market Information Thursday 15 April 2021

The European Commission has launched the EUR 800 billion bond program to borrow EUR 150 billion per year on the capital markets for the next five years. It will be a combination of auctions and syndicated loans of medium and long-term bonds. This temporary loan program should promote the recovery of the European economy after the coronavirus pandemic.

Jerome Powell, Chairman of the Federal Reserve (Fed), announced in a speech yesterday that he considers an increase in US interest rates in 2021 very unlikely. Increase of rates would not be contemplated until the Fed begins to scale back the purchasing programme. Regarding the United States budget deficit, Powell said the current level is “very sustainable”, but budget deficits overall are not sustainable in the long run.

Eurozone industrial production decreased in February 2021, based on figures from the statistical office Eurostat, published yesterday. Production decreased by 1.0% in February 2021 compared to January. In January, production increased by 0.8% on a monthly basis. On an annual basis, production even decreased by 1.6% in February.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap increased with 5 basis points to 0.10% 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.