Market Information Wednesday 14 October 2026

ECB President Christine Lagarde ruled out a central bank intervention to support French bonds, stating firmly that the solution to France’s debt problems “lies at home” and must come through domestic fiscal consolidation. Lagarde acknowledged France as a particular case in point amid the global bond selloff, but played down speculation about activating the ECB’s Transmission Protection Instrument. On monetary policy, she flagged that Iran war-driven energy prices remain the primary inflation driver, with the ECB watching closely for second-round effects in wages ahead of an expected further rate hike in December.

Rising bond yields are reviving interest in the traditional 60/40 portfolio, with yields above 5% across parts of the US Treasury curve offering investors substantially more income than in recent years and potentially cushioning against further price declines. Fund flows reflect a cautious approach, with investors channelling 14.5 billion dollars into short-term government bond funds in September while withdrawing from corporate and high-yield debt. Analysts argue the “40” has evolved beyond Treasuries and investment-grade credit to encompass securitised assets, floating-rate instruments and CLOs.

Gold held steady at around 4,165 dollars per ounce on Wednesday as investors await US CPI data due later in the day, with markets pricing in a 22% chance of a Fed rate hike this month and an 88% probability of a move in December. Fed officials sent mixed signals with New York Fed President Williams flagging one more hike this year and Governor Waller arguing that rising yields reflect stronger growth rather than entrenched inflation. Analysts noted gold’s resilience alongside rising oil as a potential sign of an emerging bullish catalyst, particularly if upcoming inflation and retail sales data disappoint.

The 6M Euribor decreased with 2 basis points to 2.89% compared to previous business day. The 10Y Swap decreased with 2 basis points to 3.54% 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.