Daily Flows & Insights – All Eyes on the US This Week – Just the Way They Like It

Daily Flows

  • Investors looking to lock in higher rates for longer terms can today lock in rates of 5.20% for 2 and 5 year tenors with an A1/A rated name, and 5.30% for 5 years with an A2/BBB+ ADI.
  • Keen depositors should keep an eye on their inbox this week as banks come to the table to plug short-term funding gaps ahead of Christmas.
  • Margins in the BBB have widened in recent weeks with interest yesterday in a 2 year BBB floating line trading at a margin of +130 for investors looking to diversify their exposure.

All Eyes on the US This Week – Just the Way They Like It

  • The latest US inflation print is out tonight ahead of the Fed interest rates decision on Thursday. Economists expect inflation to remain flat month-on-month with year-on-year change at 3.1%. Expect the Fed to hold the target range steady at an upper bound of 5.50% but retain the hawkish undertones that have marked recent comments on the back of Friday’s hot non-farm payroll numbers.
  • NAB (business) and Westpac (consumer) both release economic confidence indicators this morning, with declines in confidence expected for both surveys. This will mark another addition to cooler recent data releases that have signalled softer inflation expectations on the back of the RBA’s hiking cycle – music to the ears of mortgage holders the nation over.
  • Today marks the 40 year anniversary of the floating of the Australian dollar, with the currency now the 6th most traded globally. It finished yesterday at 65.68 US cents, up 3% MoM.
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Curve Team
Jack Pedersen