Market Information Wednesday 13 October 2021

Chinese authorities report that they will allow coal-fired power plants to charge market-driven prices to certain customers in order to curb the current energy crisis. The Chinese authorities also instructed commercial and industrial energy buyers to buy their energy directly or through intermediaries on the market, rather than stock up on electricity for fixed rates from state-owned companies. It is the most drastic measure in the Chinese energy sector in the last decades.

The U.S. House of Representatives is expected to give final approval to a Senate-passed bill temporarily raising the government’s debt ceiling to USD 28.9 trillion, putting off the risk of default until early December. Democrats were expected to maintain party discipline and pass the USD 480 billion debt ceiling increase, only to face another deadline within weeks for avoiding both a historic debt default and a temporary government shutdown.

The International Monetary Fund (IMF) warned that policymakers worldwide are entering a tricky phase of the pandemic recovery and should take care to provide continued economic support without promoting instability in financial markets. Prompt action and clear communication ahead of any policy shifts will be critical to ensure economic support gets where it is needed without encouraging inflation or increasing volatility, the group warned. IMF pointed at soaring energy prices, the rapid growth of cryptocurrencies and climate risk as key elements to treat carefully.

The 6M Euribor is unchanged at -0.52% compared to previous business day. The 10Y Swap increased with 4 basis points to 0.32% compared to previous business day.