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.