Daily Flows

• The first full week of 2025 saw two-way flows across Term Deposits and Negotiable Certificates of Deposit, offering market participants ample opportunities to secure elevated levels.
• A 6-month Term Deposit at 5.10% remains the highest outright level.
• Newcastle Permanent’s 5-year floating bond priced at 3-month BBSW +125, with a print size of $450 million.

Black Friday Sales Keep Retail Momentum Going

• Australian retail turnover rose 0.8% in November 2024 (seasonally adjusted), following growth of 0.5% in October and 0.4% in September, reflecting solid retail momentum in the final quarter of the year. On a per capita basis, retail sales have remained relatively flat for the latest quarter.
• While November’s 0.8% rise appears weaker than last year’s result, strong sales activity in October masked the strength of this print.
• Black Friday sales continued to drive widespread discounting and higher spending across all retail industries, with promotional activity extending throughout November rather than being confined to a single weekend.
• Improving real household disposable incomes and consumer sentiment have contributed to rising spending. However, the increase has been more subdued than the RBA anticipated, suggesting household consumption poses little risk to interest rate forecasts.