Daily Flows & Insights – The Week Ahead

Daily Flows

  • Strong moves upwards in swaps last week are expected to flow through to term deposit rates this week, with the 1 year swap adding 20bps and 5 years up 25 bps on the week.
  • A domestic A1/AA- name was paying 5.20% for 1 year deposits on Friday, with A2 rates moving upwards to match this level across the curve.
  • QTC has launched a new 6 year FRN this morning, with guidance in the +31-33 range. Please contact your Curve representative if you are interested in placing a bid.

The Week Ahead

  • The FOMC meets this week with their interest rate decision released early on Thursday.
  • Friday’s Core PCE Deflator data met both expectations and February’s level of an 0.3% rise MoM in the Fed’s preferred measure of inflation.
  • On closer examination, March’s unrounded level of 0.32% (annualised: 3.84%) exceeded the February level of 0.27% (annualised: 3.24%), representing a relatively significant difference sure to be under the microscope on Wednesday.
  • Locally, we have a series of second-tier indicators printing this week, with retail sales, trade data, Melbourne Institute inflation and ANZ job advertisement data all good temperature checks of the health of the wider economy.
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Curve Team
Josiah Binet