Daily Flows

• TD flow continues to be directed to a Green-Friendly BBB bank that is offering an attractive curve from 3-12 months.
• NCD margins are touching +50 for 3 months with those looking to win funds having to offer up.
• Today, Macquarie has launched a 3yr Senior Unsecured MTN fixed & floating issuance.
• Initial Price guidance is 3M BBBSW +92 (floating) & SQ ASW +92 (fixed).

Australian GDP Propped Up By Government Spending

• Australia’s GDP rate of growth decreased, coming in at 0.4% QoQ, higher than forecasted rate of 0.2%.
• Government spending on health, transport and infrastructure investment propped up the figure whilst household consumption was subdued.
• On the per capita basis Australia’s GDP fell by 0.3% in March and June quarters so we are in a technical per capita recession.
• The households saving ratio dropped to 3.2%, the lowest level since Q2 2008.
• The data is not out of line enough to warrant changes in the RBAs current outlook for the economy.