Market Information Wednesday November 18th

France threatens to fail to keep the budget deficit below the 3% of the GDP in 2017, according to the European Commission. President Hollande requires understanding in Brussels for a war budget, even if it not satisfy the budget rules. European Commissioner and former Finance Minister of France Pierre Moscovici does not immediately give up but warns the French government for exceeding the agreed budget requirement.

The Court of Amsterdam has destroyed an interest rate swap agreement between ABN Amro and an SME customer and summoned both parties to the table to see if they can come to a settlement. The ruling could affect some 17,000 SME interest rate derivative agreements which banks have to assess again by order of the Netherlands Authority for the Financial Markets.

The Portuguese ten-year yields has decreased by 27 basis points to about 2.56% in just over a week’s time. Friday the rating agency DBRS maintained the investment grade-rating for the country. This is crucial because the DBRS is the only ECB recognized credit rating agency that assesses Portugal’s ten-years debt as investment grade. This gives the ECB the opportunity to continue buying Portuguese debt in the buyout program.

The 6M Euribor remained unchanged at -0.01%. The 10Y Swap decreased with 1 bp to 0.88%.

In the attachment, 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: update@zanders.eu.