Daily Flows

• Yields of 5.25% for 1 year term deposits have become the standard needed to attract funding in the middle market space.
• NCD activity was quiet yesterday but two-way flows remained at +45 for 3 months.
• Today NAB has launched a 3 year Fixed/Floating MTN with an initial price guidance of 3mBBSW +75.

As Always, The Fed Keeps Their Options Open

• Jerome Powell was cautious not to say anything too jarring but noted concerns about inflation. The FOMC maintained its easing bias despite acknowledging a lack of progress towards the 2% inflation target.
• They announced plans to slow balance sheet run-off confirmed from June.
• Powell suggested a resumption of rate hikes was unlikely, indicating potential future rate cuts given the current restrictive policy stance.
• As always Central Banks look to keep their options open and ensure they do not pigeon hole themselves into positions.
• They will continue to asses the data and ascertain whether the current monetary policy stance needs to change.