Daily Flows & Insights – Chalmers Addresses Regulation Implementation & RBA Board Proposal

Daily Flows

  • Yesterday, the majority of flow is derived from maturing funds, as markets remained quiet with Victoria, South Australia, and Tasmania offline.
  • Suncorp has launched a 5-year senior unsecured issuance with an initial price guidance of +105 basis points.
  • This is approximately 15 basis points wider than trading of the most recent ANZ 5-year issuance.

Markets Await U.S. CPI

  • Markets are moving sideways as they await U.S. CPI figures tonight.
  • Last month’s U.S. CPI came in hotter than expected, with core inflation at 3.9% versus an expected 3.7% YoY and headline inflation at 3.1% versus an expected 2.9%.
  • Interestingly, U.S. Treasury yields edged higher overnight, indicating that markets are positioning themselves for the potential impact of a hawkish print.
  • That being said, markets will still look hopeful for a mild release that reaffirms market pricing of a full cut by July.

Chalmers Addresses Regulation Implementation & RBA Board Proposal

  • In light of the recent liquidity proposals by APRA, Jim Chalmers has proposed introducing a regulatory grid for the financial sector to streamline implementation.
  • The aim is to simplify business operations in the financial sector, promoting transparency, collaboration, and engagement with the private sector.
  • This is a welcome decision for the banking sector, which is constantly having to digest new laws and regulatory changes.
  • Chalmers is also looking to introduce a two-board system for the RBA, with one focusing on monetary policy decisions and the other on governance.
  • While on paper it appears to be a move to introduce more expertise and experience to the board, opposition questions it, accusing Chalmers of aiming to stack the more important monetary policy board with labour-aligned figures.
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Curve Team
Jack Pedersen