Daily Flows

• Semi-Government floaters continue to be picked up by MLH APRA-regulated market participants, with offerings still available.
• NCD margins remain at +45. As we approach TFF, there may be tightened liquidity positions as cheap funding is drained from the system.
• Those able to place in the Unrated space have been handsomely rewarded with 5.10% for a 3-month term deposit.

All Eyes on Tonights U.S. Retail Sales

• Markets were quiet yesterday, with minimal data points coming in.
• U.S. Treasury yields rose slightly, while equities moved sideways, and markets are pricing in 15 basis points of cuts by the Federal Reserve in June.
• Focus will be on tonight’s U.S. Retail Sales and PPI.
• Retail sales will be closely considered in the Fed’s monetary policy stance.
• Markets are expecting a rise of 0.8% MoM, offsetting January’s -0.8% MoM.