Daily Flows

• With demand for funds having cooled considerably any stand out TD is jumped on by market participants.
• Investors that were quick to act were able to pick up 6-12 month TD special that was limited in offer.
• NCD margins have to +45 subsided with mid-month inflows dampening demand.

• For the 4th consecutive month in a row, U.S. retail sales increased, beating market expectations (0.7% MoM Vs 0.4% MoM).
• Increases in sales may had unseasonal upward pressure from Amazon’s Prime Day.
• Nonetheless, the consumer remains resilient in the face of rising interest rates and cost of living pressures.
• The Fed will need to maintain hawkish sentiment to ensure consumer discretionary spending remains under control.

Meeting Minutes & Wage Price Index

• Similar to previous meeting minutes the RBA maintains a hawkish tone but confirms they are comfortable with an extended pause.
• A rate hike was still considered by members but there was more upside to extending the pause.
• Wage price index also was released, rising by 0.8% QoQ lower than market expectations.
• This undershoot is good news to the RBA, who are wary of the potential for wage spiral increases feeding into higher prices and inflation.