UBS will pay 3 billion Swiss francs ($3.24 billion) for Credit Suisse, while the Swiss central bank (SNB) said it will provide a substantial amount of liquidity to the merged bank.
The US Federal Reserve joined forces with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the SNB, in a coordinated action to improve the provision of liquidity through their standing facility arrangements. of “swap” in dollars.
German government bond yields hit their lowest level since mid-December, with the bloc’s benchmark 10-year yield DE10YT=RR dipping 15 basis points to 1.97%, after previously reaching 1.951%. .
The spread between Italian and German 10-year yields stood at 201 basis points at the time of writing this article.
“Market sentiment is as much about trust as it is about facts, as it is governed by balance sheet exposure, risk coverage and real-time deposit flows, which are generally proprietary information,” Michael said. Leister, head of interest rate strategy at Commerzbank.