Market information Wednesday June 3rd 2015

The bonds of countries from the Eurozone have had a setback yesterday. The prices declined as the interest rates increased by 10 to 15 basis points. The interest rates in Germany increased by 16 basis points to 0.70%. In France, the interest rate increased by 15 basis points to 1% and the threshold of 2% was passed in Spain due to an increase of 11 basis points. The euro gained significantly against the dollar. The reason for these developments was the strong inflation figures announced by Eurostat and the negotiations with Greece. The inflation in the eurozone rose for the first time in 6 months, from 0% to 0.3%.

The Reserve Bank of India has lowered the interest rate for the third time this year. The key repo rate is lowered by 25 basis point to 7.25%, which is the lowest level since September 2013. Herewith the central bank hopes to boost the business investments. Bank Governor Raghuram Rajan said that the banks will pass the lower interest rates to their customers.

According to the anti-fraud office of the European Commission, OLAF, the last year at lease EUR 900 million of the European funds have been defrauded. That is more than twice as many as in 2013. The service is engaged in investigating reports of fraud and misappropriation of budget within the European institutions. Of the EUR 900 million, OlAF managed to recover EUR 206.6 million through the European Commission and the individual Member States. The service expects that eventually more money will be recovered. Most of the issues on which OlAF advices the Member States relate to abuse of EU structural funds that are destined for poorer regions and countries.

The 6M Euribor remained unchanged at 0.05%. The 10Y Swap increased by 12 basis points to 1.03%.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: