Daily Flows

• Yesterday, the CBA issuance priced at +75 for 3 years and +95 for 5 years.
• The 5 year floating tranche attracted $2.4Billion of funds.
• Opportunity to pick up major bank offerings at a similar level are available in the secondary market.
• NCD activity has picked up considerably with a few banks offering +50 to attract.

U.S. Inflation Supports Rate Hold

• Last night U.S. inflation data was released. MoM for inflation rate was 0.2% (in line with expectations).
• For the first time in 13 months, the inflation rate YoY rose to 3.2% from 3% and is relatively driven by base effects.
• Most increases were driven by higher food, energy rent and caregiving prices.
• The slower pace of core inflation will be noted as a positive for the fed.
• Although services inflation still persists, this print has some economists now calling for a potential pause at the next Fed meeting mid September.