Market Information Thursday 6 June 2019

The IMF reports that the trade war between China and the US will lower growth of the global economy in 2020 by 50 basis points, equivalent to USD 445 billion, more than the size of South Africa’s economy. In this scenario the already imposed import tariffs as well as the recently announced extra tariffs are taken into account.

IPE reports that the assets under management (AUM) of the 400 largest asset managers worldwide have increased with 1% in 2018. In 2016 and 2017 the increase in AUM was 12% and 4%, respectively. Six of the ten largest asset managers, who account for a third of the total AUM, reported lower AUM in 2018 compared to the previous year.

The yield on Dutch 10-year government bonds has reached an all-time record low this morning. Around 8.30 a.m., the yield dropped to -0.048%. A decreasing bond yield indicates increasing demand. The increasing demand is caused by escalating trade tensions, which makes investors turn to safe-haven assets.

The 6M Euribor is unchanged at -0.25% compared to previous business day. The 10Y Swap decreased with 3 basis points to 0.28% 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.