Market Information Monday 21 September 2026

Germany’s ruling conservatives, CDU, suffered their worst postwar election result as voters turned against unpopular pension, tax and healthcare reforms amid soaring energy and housing costs. The populist right AfD won nearly 38 percent in a key eastern state. Chancellor Merz vowed to maintain structural reforms despite the setback, risking further polarisation as eurozone growth stagnates.

Inflation remains elevated across the US economy at around 3.6 percent, well above the Federal Reserve’s 2 percent target, with broad-based pressures in services and consumption. The Fed raised rates to 3.75 percent last week, with most officials projecting at least one more quarter-point increase before year-end. Despite geopolitical tensions and trade conflicts, the economy shows resilience with strong growth and improving productivity.

Japan’s central bank raised rates to a 31-year high of 1.25 percent but signalled caution with two dissenting votes and core inflation remaining at just 1.7 percent. Markets reacted counterintuitively as investors interpreted the split decision as restraint, with the yen weakening and stocks rising 1.5 percent despite the rate increase. Further hikes are likely but experts expect the terminal rate to settle between 1.75 and 2 percent by 2027.

The 6M Euribor decreased with 1 basis point to 2.96% compared to previous business day. The 10Y Swap increased with 3 basis points to 3.55% 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.