Daily Flows

• This week marks the largest Term Funding Facility maturity so far with $4Billion set to mature. This is 10 times the average of previous weeks.
• Although funds will have been set aside to facilitate this, it will be interesting to see if this plays into Money Market pricing at all.
• The narrative of demand for funds continued last Friday. Bespoke 5.00%+ levels are common place for terms 3 months onwards.
• Market Participants who are quick to act have been able to snap up healthy yields.
• NCD margins continue to be offered at +50 for 3 months.

Big Week Ahead

• Off the back of the recent hawkish updates from the RBA we will get a wave of key data updates this week.
• Out today we will get the latest sentiment updates for both consumers and business.
• Consumer sentiment has been hovering around the lowest level since the 90’s recession while the business sector has remain more resilient.
• Then Thursday we will get get the May employment data which will be closely watched after employment fell in April.
• It will also be a big week in the US with the latest CPI due out tonight with PPI out tomorrow night.
• That will be followed by the FOMC decision following their June meeting where the market is currently pricing in a pause.