Market information

Friday, August 13, 2010

Yesterday, in the auction for the issuing of short term debt, Ireland had to pay a higher rate than expected. There was EUR 500 million issued with maturity date February 11th 2011 and an interest rate of 2.458%. The interest rate on Irish paper, with a comparable time to maturity issued last month, was 1.367%. The immediate reason for the increase of this rate is the announcement of a capital injection of EUR 10 billion in nationalized bank Anglo Irish Bank at the beginning of this week. The expectation is that other Irish banks will follow with requests for capital injections.

The interest rate on 10-year German government bonds decreased to 2.4%. This is the lowest rates since 1989. The reason for the low interest is that German government bonds are perceived as very safe compared to other countries and that there are few countries with a similar risk.

The Dutch Central Bank is in consultation with the pension funds that are in heavy weather on the cutting of the retirement benefits and rights. The parties involved do not yet want to comment on the precise content of the conversations.

The 6-month Euribor decreased 1 basis point to 1.15%. The 10-year swap rate decreased 1 basis point to 2.70%.

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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