Market Information Monday 1 September 2025

Sovereign bond markets are transmitting the burden of higher yields directly onto governments, with the UK’s 30-year gilt yield climbing above 5.0% for the first time since 1998. Similar upward pressure is evident in German Bunds and French OATs, where long-dated yields have risen by more than 40 basis points over the past month. The move reflects reduced central bank demand and growing investor concern over debt sustainability, tightening fiscal space across Europe.

The Indian rupee continued to depreciate, breaching the critical ₹88/USD level and reaching a record low of ₹88.31 in early trading. Nearly $950 million in foreign equity outflows last week and uncertainty around U.S. tariff policy have intensified downward pressure on the currency. Meanwhile, 10-year Indian government bond yields rose to 7.33%, as investors demand fiscal clarity amid widening deficits.

Asian equities traded lower at the start of September, led by a retreat in regional technology stocks, while China stood out with relative resilience. The CSI 300 index gained 0.6%, supported by optimism around artificial intelligence and a private PMI showing factory activity expanding at its fastest pace in five months (50.5). In contrast, Japan’s Nikkei 225 fell 0.8% and South Korea’s Kospi declined 1.1%, reflecting investor caution ahead of key U.S. economic data.

The 6M Euribor increased with 1 basis point to 2.07% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.66% 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.