Market Information Thursday 20 February 2025

Plans to boost European defence spending have raised long-term borrowing costs and steepened sovereign debt yield curves as investors expect more debt issuance. Countries like Germany and the UK are considering fiscal reforms to support larger defence budgets, driving market shifts amid inflation risks and uncertainties under the new U.S. administration.

China’s US Treasury holdings have decreased to their lowest level since 2009, as Beijing diversifies its foreign reserves by investing in assets like gold. The decline includes a $57 billion drop in direct holdings, The move signals China’s strategy to reduce reliance on US debt while exploring other financial assets.

The EU has agreed on new regulations targeting food and textile waste, requiring companies to bear the costs of clean-up. The rules mandate reductions in food waste and require textile producers to fund recycling, affecting fast-fashion and ecommerce platforms. Though some critics find the targets not stringent enough, the deal marks a significant regulatory shift for businesses selling into the EU.

The 6M Euribor decreased with 1 basis point to 2.48% compared to previous business day. The 10Y Swap increased with 5 basis points to 2.49% 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.