Market Information Thursday 19 March 2020

The European Central Bank (ECB) announced after an emergency meeting on Wednesday evening that it is setting up an additional bond-purchase programme worth EUR 750 billion. The program will run until the end of 2020 and can be extended if necessary. Both corporate and government bonds can be purchased within the programme, while it also includes short-term debt from non-financial parties and Greek government bonds. In a statement, President Christine Lagarde emphasized that the ECB has “no limit” when it comes to its commitment to the euro. In addition, she believes that policy makers at the ECB will do whatever is necessary within the limits of their mandate.

Eurostat has announced, based on final figures, that inflation in the eurozone has fallen in February 2020. Inflation reached 1.2% year-on-year, compared to 1.4% a month earlier. The figure corresponded to a provisional estimate. Core inflation, excluding fluctuating energy and food prices, was also 1.2%.

The Japanese government announced that imports decreased by 14% year-on-year in February 2020. Imports of goods from China were halved. Exports decreased by about 1%. According to economists, the figures point to an impending recession in Japan. Significantly declining import and export figures are also expected for the coming months, as more and more regions of the world are experiencing an outbreak of the corona virus.

The 6M Euribor is unchanged at -0.37% compared to previous business day. The 10Y Swap increased with 17 basis points to 0.12% 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.