Daily Flows

• With built-up demand leading into Christmas, a lot of ADIs are popping up chasing funds. This will likely dry up in the new year.
• With reference rates bumping up post-GDP, we are seeing lots of attractive rates on offer, and you can still find quite a few terms above 5.00% in the short and longer terms.

• We saw a lot of flow in the BBB space at 5.10% for 12 months last week. We expect to see similar levels this week.

Approaching Year’s End

• The last full week of the year shouldn’t contain too many surprises as far as data goes, with the monthly consumer sentiment report due out tomorrow.
• It follows a run of mixed news, with the dovish tilt from the RBA last Tuesday being somewhat at odds with yet another strong employment report released on Thursday.’

• Market expectations gyrated on the mixed news throughout the week, with almost three cuts still priced for next year, the first not expected until the May meeting.

• Offshore events should provide more interest, with the Fed set to meet this week, where a 25bp cut to the Fed Funds Rate is expected.
• There will be other central bank meetings, such as the Bank of England and Bank of Japan, where no change is currently expected.