Daily Flows & Insights – Big Week Ahead 

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.

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Curve Team
David Flanagan