In 2022, 2-year and 5-year fixed mortgage rates converged in response to the sharp rise in short-term swap rates, as previously witnessed in times of macro-economic instability.

Following the government’s ‘mini budget’ announcement, financial markets reacted negatively, leading to the pound selling off to all-time lows and government yields rising significantly. This data visualisation looks at UK Google searches for gilts vs historic search levels, which reached an all-time high following the elevated volatility of UK government debt.

After three decades of increasing indebtedness, Europe is facing a rapid tightening of monetary policy across the board. Austerity and tax increases remain unpopular but if the issue is not tackled, could a situation emerge similar to the Greek Debt Crisis? Current debt levels suggest a much broader potential crisis and a limited capacity to respond with fiscal or monetary stimulus.

This data visualisation tracks adjustments in the resulting regulatory capital to RWA ratios across 28 European countries since 2008, with the aim of avoiding a situation where again we see a need for the government bailout of banks on such a large scale.