Daily Flows

• Market participants should expect bespoke opportunities as banks seek to meet end-of-liquidity targets.
• In the NCD space, there are opportunities to earn above-market levels from domestic names chasing funds.
• Those placing funds with unrated banks have been handsomely rewarded, with rates of 5.12% for 4 months.

Australian CPI Indicator Good Signs for the RBA

• The monthly indicator remained unchanged from December at 3.4% YoY for January, which was lower than market expectations.
• Softening electricity and holiday travel prices were offset by durable goods prices.
• This is the first print to use updated weights that are supposed to more accurately reflect spending patterns that have stabilised since the post-pandemic period.
• While the monthly indicator does not capture the whole picture and only serves as an indicator, it is a welcoming sign for the RBA, with the figures tracking below SOMP estimates.