Interest rates on government bonds fell on Tuesday. The interest rate on Germany’s two-year bond had dropped 4.8 basis points to 2.012 percent. Kymmenvuotinen, on the other hand, had dropped 8.9 interest points to 2.032 percent.
In the United States, the changes were smaller. The two-year Bond rate had fallen by 2.2 basis points to 3.619 percent. Kymmenvuotinen, on the other hand, had lowered the interest rate by 4.9 points to 3.732 percent.
By the end of the year, the market is now expecting two 25-basis-point cuts to the policy rate from the European Central Bank, and the third is given a 67 percent probability.
Fresh inflation data was received from the euro area today. Consumer prices rose by 1.8 percent year-on-year, which was also in line with the expectations of the consensus of economist forecasts collected by the news agency Bloomberg. The publication did not cause any changes in German interest rates.
However, at the monthly level, a slight undershoot was seen compared to the forecasts. In September, prices fell by 0.1 percent compared to August, when the consensus did not expect any changes in prices.
In September, core inflation adjusted for fluctuations in energy and food prices was 2.7 percent, in line with forecasts. It was also 2.7 percent in August.
Even later today, the US will receive the industrial ISM purchasing managers’ index for September and construction investments for August.
At 4:31 p.m., one euro was worth 1.11 dollars, 159 yen, 0.83 pounds and 11.3 Swedish kronor. The dollar was 143.3 yen and the pound was 1.33 dollars.
Source: www.arvopaperi.fi
