Market Information Thursday 3 November 2022

The UK is pressing ahead to tighten oversight of the so-called shadow banking sector, taking the lead ahead of possible co-ordinated international action. UK regulators could preempt recommendations by the G20’s Financial Stability Board (FSB) to require permanently higher liquidity buffers for Liability Driven Investment (LDI) funds, used by UK defined benefit pension schemes, backed by regular stress tests, two sources said.

Central banks will get inflation under control, but there will be turbulence in the near-term due to monetary tightening and geopolitical risks, top bankers said at a summit in Hong Kong on Wednesday. Morgan Stanley CEO James Gorman said his gut feeling was that central banks would manage to curb price rises but investors would need to get used to higher inflation — of around 4% versus 1-2% before “this crisis”.

President Joe Biden’s administration will make $13.5 billion available to help low-income U.S. households lower their heating costs this winter, the White House said on Wednesday. As part of the initiative, the U.S. Department of Health and Human Services is providing $4.5 billion in low-Income Home Energy Assistance Program (LIHEAP) funding.

The 6M Euribor increased with 4 basis points to 2.17% compared to previous business day. The 10Y Swap is unchanged at 3.02% 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.