Daily Flows

• Curve sourced stock in illiquid A2/BBB+ lines yesterday for interested clients, with AMP’s 2026 FRN and GSB’s 2027 note attracting flows.
• Several A2 names continued to show attractive NCD levels at the 3 month mark, with rates of +50 and +47 available yesterday from two A2/BBB+ issuers.
• 5 year term deposit rates of 5.14% remain the standout from an A1/A branch bank, as we saw investors lock in yield ahead of projected rate cuts later this year.

Meaty Macro Moves after Powell Posits Prolonged Pause

• Fed Chair Jerome Powell cautioned overnight that any cuts to the current Fed Funds target rate of 5.25-5.50%, a 23 year high, will be delayed until the end of the year on the back of strong recent data prints.
• 10 year US Treasuries responded with a 6bps gain to 4.66%, the highest yield in almost 6 months. The US dollar continued its recent strength overnight, up another 0.05% to 106.257 on the DXY Index.
• Australian 10 years were up 7 basis points and another 3bps this morning, currently trading at 4.37%, while the Aussie was down 0.6% to 64.02 yesterday after Powell’s speech, coming close to a 3.5% fall from 66.3 just last Tuesday.