Daily Flows
- There is a clear favouring of Green-Friendly counterparties developing amongst market participants investing funds. Yesterday, a green-friendly counterparty was able to pick up significant flow at the shorter end of the curve.
- In the NCD space a bid tone has seen +45 being paid for new funds.
- Markets participants continue to lock in 5 year term deposits, locking in 5.13% from an ‘A’ rated counterparty.
Retail Sales Retraces After Last Month
- January retail sales increased by 1.1%, below the market’s 1.5% expectation but surpassing Westpac’s forecast of 0.3%.
- Sales volatility attributed to challenges in adjusting for seasonal shifts, particularly around ‘Black Friday’ sales.
- Strong rebounds in clothing, household goods, and department stores in January, influenced by Black Friday period.
- Looking over the last three months, retail sales continues to be weak and points towards a continued slowdown in demand.
U.S. PCE Inline with Expectations.
- The U.S. Personal Consumption Expenditure Index came inline with expectations, rising by 3.0% MoM and by 0.4% MoM.
- Personal income was up slightly but spending was fairly subdued.
- The print is not jarring enough to warrant any changes to the Feds current near term outlook.