Market information

Thursday, February 04, 2010

The government budget deficit of Greece, 12.7% over 2009, is above the European norm. This year, Greece needs to raise € 53 billion capital from the market to finance its debt, approximately 20% of the gross domestic product. Partly due to the above, the interestrate on Greek sovereign bonds increased significantly. To solve this problem the European Committee wants Greece to cut costs. The target is to reduce the deficit to less than 3% at the end of 2012. The committee thinks the involvement of the IMF is unnecessary. Many European member states disagree and think the IMF should interfere.

American and European supervisors want to put a limit on the size of ETF-indexfunds. The market for these exchange traded funds last year grew more than 43% and it is expected that the total invested amount will exceed the 1.300 mrd dollar limit this year. The popularity results from the fact that ETFs track an index or commodity, as a result of which it is also possible for private individuals to speculate on for example raw oil, natural gas or CO2-emmission rights. Disadvantage and reason for the desired constraints is that this popularity causes extreme exchange rate movements on mainly the commodity market.

On February 9, the Dutch state reopens a loan to raise € 2 to 3 billion. The loan has a tenor of five years and has a yearly interest rate of 2,75%.

The 6M Euribor remained unchanged on 0,97%. The 10Y Swap increased with 1 basispoint to 3,44%.

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)

Download market data