Daily Flows

• Today a number of A-2/BBB+ rated banks are actively seeking term deposit funding, creating flexible pricing opportunities across the curve. Yields of up to 4.50% remain available for sub-12 month terms.
• For longer-dated TDs, an A-rated bank continues to stand out for yield-focused investors, offering 4.60% for 5 years, currently the most competitive level on the curve.
• NCD demand is steady, with the going rate for new money holding around +45bps over 3-month BBSW.

Focus Turns to Growth

• US JOLTS data came in stronger than expected, with job openings rising to 7.39 million in April (vs 7.1m forecast), reinforcing a resilient labour market and consolidating expectations that the Fed will stay on hold.
• RBA Minutes from May revealed an active discussion around a 25–50bp rate cut versus a hold, but soft consumption data since the meeting, has increased the likelihood of further easing.
• RBA Chief Economist Sarah Hunter noted global trade disruptions could raise costs, delay supply chains, and weigh on demand — adding downside risks to the economy and growth outlook.
• GDP data is due at 11:30am, with market consensus at +0.3% q/q. This compares with the RBA’s May forecast of +0.5%, making today’s release a key guidepost ahead of the July 8 meeting.