Market information

Friday, November 11, 2011

The interest on Italian 10 year bonds dropped to 6.9%. The European Central Bank intervened in the market multiple times on Thursday, buying Italian bonds. Through this intervention the central bank seeks to decrease the interest on State paper. Thursday, Italy borrowed an amount of 5 Billion Euro via 12-month T-bills. On these loans, an interest rate of 6% had to be paid. The interest on the Spanish bonds also dropped to 5.8%.

Yesterday, the U.S. federal government budget deficit decreased with 30% to 98.5 billion, compared to the 140.4 billion dollars in the same period last year. This is due to reduced government spending of 8.7% and tax revenues increases of 11.6%.

The European Commission cut its euro-region growth forecast for 2012. The European Commissioner of Economic Affairs stressed the risk of a recession as leaders struggle to contain fiscal risks. The Gross domestic product is expected to grow 1.5% this year and 0.5% in 2012. In 2013, the economy is expected to expand with 1.3%.

The 6M Euribor remained unchanged at 1.69%. The 10Y Swap increased by 5 basis points to 2.44%.

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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