Market information
Wednesday, August 11, 2010
Yesterday the Federal Reserve announced to buy back long-term government bonds in order to stimulate the economy. The Fed deems the measurement necessary due to a slower economic recovery than expected. The interest on the ten-year government bonds decreased by nine basis points to 2.74%.
The American investor Warren Buffet warned that the huge increase of money supply will only lead to inflation. He adjusted the portfolio of his investment company Berkshire Hathaway towards increasing prices. He invested more in shorter maturities at the expense of long term bonds.
The ING indicates that the insurance activities will be stand alone by the end of the year. The split costs qualify for maximum 150 mln Euro this year. The European Commission forces ING to take these measures as a consequence of the state aid ING received in 2008.
The 6M Euribor remains at 1.16%. The 10-year swap decreases with four basis points to 2.76%..
In the attachment below, 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: .(JavaScript must be enabled to view this email address).
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