Market Information Tuesday 31 December 2019

China and the United States will most likely sign the ‘phase 1’ trade deal within a week. The agreement is currently being translated. US trade advisor Peter Navarro announced on Fox News that after completion of the translation, the agreement will be signed. As part of the phase 1 deal, imposed import tariffs between the two countries will be lowered.

European banks issued EUR 94 billion of ‘bail-in’ debt this year to comply with stricter regulations, according to the Financial Times. This bail-in debt is classed as senior non-preferred (SNP) bonds. These bonds can be converted into equity when the losses of a bank cannot be absorbed by the capital reserves of the bank. An extensive amount of bail-in debt should make sure that bondholders, instead of taxpayers, should pay for the recapitalization of the banks during a crisis.

According to figures from the Chinese statistics bureau, the Chinese industry stabilized in December in comparison to November. The purchasing managers index (PMI) was 50.2 similar to the level of that in November. Economists expected a level of 50.1.

The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap increased with 6 basis points to 0.21% 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.