The Euribor low on the brink of 5%
Thursday, October 23, 2008 @ 1:47 PM
The benchmark for calculating mortgages has been a step down for the first time since May, the barrier of 5%. The tenth consecutive drop puts the twelve-month Euribor at 5.06%.
The longest streak in the downhills so far this year continues in the Euribor, both in the twelfth month in three months.
The twelve months, the principal benchmark for mortgages, chained their tenth consecutive fall, to stay one step away from going below 5% for the first time since May 21. 5060% of the daily change today, since the 5079%, its supposed minimum of five months.
The truce was also reflected in the three-month Euribor, the barometer to assess the health of the interbank market. In this case, the spate of prolonged and downs over the last 11 days.
The result is a drop in the daily change of today, until 4921% 4936% from the set yesterday, gaining at the levels prior to the bankruptcy of Lehman Brothers.
In recent weeks, the Euribor has replicated to a greater extent the evolution of public debt markets. Yesterday, the profitability of bonds in Europe to two years marked their minimal since January 2006.
In parallel, the increasing deterioration of the European economy has raised the forecast neuvos cuts in interest rates by the ECB, up to levels close to 3% from 3.75% today, to the middle of next year.