Market Information Wednesday 27 May 2020

The US consumer confidence index rose 0.9 points to 86.6 in May, according to the Conference Board report released Tuesday. The sub-index of expectations, based on consumers’ short-term outlook for income, business and labor market conditions, increased for the second consecutive month to a reading of 96.9 in May from 93.8 in April.

Federal Reserve Bank of St. Louis President, James Bullard, predicted that the US economy will recover quickly and that the jobless rate will drop below 10 percent by December. He also mentioned that “the third quarter very likely, right behind the worst quarter, will be the best quarter of all time on the growth perspective”. His expectations are more optimistic than the majority of Wall Street. Economists surveyed by Bloomberg expect unemployment to be 10.3% in the fourth quarter of 2020.

The European Central Bank is preparing contingency plans in case the Bundesbank is excluded from participating in the purchase program according to news agency Reuters on Tuesday based on anonymous sources. About a quarter of the purchased government bonds under the PSPP are Bunds. The German central bank has received an ultimatum from the German Bundesverfassungsgericht to justify the purchase program.

The 6M Euribor is unchanged at -0.15% compared to previous business day. The 10Y Swap increased with 3 basis points to -0.11% 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.