An A-2/BBB green-friendly bank is actively seeking funds into EOFY, offering elevated rates across their curve with 4.15% for 2 years standing out relative to the market.
NCD demand remains steady, with a few names still looking to raise new money at +45bps over 3m BBSW.
Yield-focused investors can still pick up NewCap Jan 2030s at around +120bps, offering value in the longer part of the curve.
Markets Rally on Ceasefire and Dovish Powell
Risk-on sentiment returned overnight after President Trump confirmed a ceasefire between Israel and Iran, which by all reports is holding.
US bond yields fell after weaker-than-expected consumer confidence, strong demand at a two-year Treasury auction, and dovish remarks from Fed Chair Powell, who said: “If inflation pressures remain contained, we’ll get to a place to cut rates sooner rather than later.”
The Conference Board’s Consumer Confidence Index dropped to 93.0 from 98.4, well below the 99.8 consensus.
Domestically, attention turns to the May Monthly CPI Indicator today. Being mid-quarter, it gives a clearer read on services inflation. Markets expect it to hold at 2.4% y/y.