Market Information Tuesday 1 March 2022

The Australian central bank ceases bond purchases, and maintains the policy rate at 0.10%. Inflation in Australia is rising, but not as severely as in many other places in the world. Inflation is expected to be around 3.75% for the next few quarters, with fears of further rising inflation due to the war in Ukraine. The bank expects to make a change in the policy rate only once inflation is between 2% and 3% for an extended period. In doing so, the central bank indicated that rising energy prices and disruptions in supply lines are playing an important role. The Australian labor market is performing well, with the unemployment rate at 4.2%. This is the lowest measured point in fourteen years.

The economy in China grew faster than expected in February. The purchasing managers’ index came in at 50.2 in February. This is higher than the 49.9 that was expected. The index measuring activity in the services sector rose to 51.6 from 51.1 in January. China’s overall industry also grew and this index came in at 50.4 compared to 49.1 in January.
Japan’s industry, on the other hand, grew less in February than in the previous month. The industry did continue to grow, indicating an index of 52.7. In January, it was 55.4.

The price of oil rose to a settlement of over USD 101 for a barrel of Brent oil. A barrel of West Texas Intermediate also became significantly more expensive, with a settlement of USD 95.72. Because of the Russian invasion of Ukraine, prices are expected to rise further in the coming period.

The 6M Euribor decreased with 1 basis point to -0.49% compared to previous business day. The 10Y Swap decreased with 9 basis points to 0.79% 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.