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Interest rates going negative

The Swiss National Bank (SNB) today imposed the negative deposit rate as the Russian financial crisis and the threat of further euro-zone stimulus heaped pressure on the franc. Switzerland normally sees money flowing into its coffers in difficult economic times. A charge of 25 basis points or one-fourth of a percentage point on sight deposits of commercial […]

Iraqi bonds gain on Maliki resignation optimism

Iraqi government bonds advanced, sending yields down the most in 11 months, on speculation Iraqi Prime Minister Nouri al-Maliki’s resignation will improve the country’s security situation. Maliki’s move ends a political impasse and may enable Prime Minister-designate Haidar al-Abadi to pull together a more inclusive government better able to counter Islamist militants advancing in the […]

Who buys bonds with a negative yield?

Bloomberg today reports that German bond gains sent the two-year rate below zero for the first time since May 2013 before the European Central Bank announces its latest decision on monetary policy today. The two-year note rate was at minus 0.002 percent, and touched minus 0.004 percent, the least since May 24, 2013. A negative […]

Yields on Iraqi bonds starts retreat after jump

Iraqi bonds plunged the most in two years after fighters from ISIS, a breakaway al-Qaeda group took control of Mosul. The yield on Iraq’s $2.7 billion of bonds due in January 2028 climbed 60 basis points to 7.03% on June 11 after ISIS militants seized the country’s second-largest city, Mosul. It’s the biggest jump in […]

Iraqi bond: Yield tumbled 101 bps

As per an article on Bloomberg, an unintended consequence of Iraq’s political strife is cheaper borrowing costs for the government. As per the article, the yield on Iraq’s January 2028 bond tumbled 101 basis points this year to 6.64% on May 22, within three basis points of the lowest since March 2013. The bond has returned […]

Will Libor cease to be the global benchmark?

The hunt for a credible replacement for Libor – long the most accepted market measure of short-term interest-rate moves – is heating up. Banks are testing alternatives to the London interbank offered rate, which is coming under increased scrutiny after regulators accused banks of manipulating the rate. Libor suffered a fresh blow to its credibility […]

USD Euribor started to rival BBA Libor

The first USD Euribor was published on 2 April 2012 with a panel of 20 European and international banks, after a 9-month testing period. It was developed by Euribor-EBF and the Euribor Steering Committee following a demand from the market to create a benchmark offering the market the best possible idea of the USD interbank […]

BBA to review calculation & distribution of LIBOR

LIBOR is kept under constant review by its board and an independent technical oversight committee. The last review was held in 2008-09. It included an open and wide-ranging consultation on all aspects of the design and calculation of LIBOR from which evolved the calculation and governance of the rates precisely in line with that which […]

EBF is planning for a new benchmark to rival Libor

A European banking group are testing a new price benchmark to set the cost of inter-bank and corporate lending, challenging the London Inter-Bank Offered Rate (Libor) pricing scheme and paving the way for a stronger role for continental European banks in money markets. On 26 May 2010, the Euribor Steering Committee Members voted in favour […]

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