Market information
Monday, January 09, 2012
Chinese banks have issued more loans in December due to the easing of restrictions on lending by the Chinese government. This is evident from figures published by the Chinese central bank. Chinese banks provided loans for a total of Yuan 640.5 billion (EUR 79.8 billion) in December. In November, this amount totaled Yuan 562.2 billion (EUR 70 billion). Lending by banks is encouraged by reducing the banks' capital requirements. The Chinese government also ordered banks to provide more loans to small businesses. The interventions must ensure that the impact of the decreasing growth of the Chinese economy will be reduced. The Chinese government imposed the restrictions earlier to prevent overheating of the economy and high inflation.
Greece is planning to issue new bonds with state property as collateral. In this way the government wants to buy back old loans. For every billion of new bonds, the government will be able to buy back old bonds with a nominal value of around EUR 2.5 billion. This is possible because the value of Greek government bonds has decreased substantially. The Greek national debt of USD 350 billion is currently trading at about 35% of the nominal value.
The Euro-Dollar exchange rate reached its lowest point in 16 months on Monday. Relative to the yen, the euro reached the lowest point in 11 years. The Euro was worth USD 1.2664, while later it gained some value to USD 1.2725. Relative to the yen, the currency is trading for YEN 97.28. The decline of the Euro comes after a weekend of negative news about Europe. The International Monetary Fund indicated this weekend that it loses faith in the ability of Europe to solve the Greek debt problems.
The 6M Euribor decreased with 1 basis point to 1,29%. The 10Y Swap decreased with 1 basis points to 2,39%.
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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