Market information

Wednesday, September 08, 2010

Yesterday a council of European finance ministers revealed different views about the way banks and other financial institutions should be extra charged. The European Commission would like to introduce two different arrangements. First, the bank levy is intended to fill an emergency fund for a future banking crisis. In addition, the import tax should reduce the excessive risks taken by banks and should enforce more banks to become responsible for the social costs of a crisis.

José Barroso, president of the European Commission, is exploring new forms of European funding and will include European bonds. Issuing bonds is an extremely sensitive topic for some European countries. Weaker countries can only obtain money at high interest rates but through Eurobonds, all European States can benefit from low interest rates. Barroso also said that he was against euro speculation, and speculation against weak States, and will address the trade in credit derivatives to limit.

After a few days of an increasing U.S. interest rate, it has dropped sharply again yesterday. This reintroduces the fear of a double dip. Especially uncertainty surrounding the health of European banks accounted for the decline in U.S. interest rates.

The 6M Euribor remained unchanged at 1.13%. The 10-year swap decreased 3 basis points to 2.53%.

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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