- 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.