Daily Flows

• With uncertainty surrounding the interest rate outlook at the longer end, funds were directed to shorter tenors.
• A rate of 5.18% for 6 months was a standout as short-end reference rates remained steady.
• As Liquidity tends to become tighter in the NCD market at this time of the month, margins may tick up until mid-month when banks receive securitisation top-ups.

Bond Yields in the U.S. Fall and Uncertainty Over Oil Climbs

• Dovish Fed speak by FOMC member Logan has seen markets react accordingly.
• Logan made it clear that recent increases in long-term yields may reduce the need for the Fed to raise their Federal funds rate again.
• The treasury bond market was closed for Columbus Day holiday; however, futures were active.
• Markets are now pricing in a 35% chance of a hike in December.
• Uncertainty over the effect of Middle-Eastern conflict has seen oil rise, with WTI climbing by 4.3%.
• Right now, markets are plagued by uncertainty with geopolitical events and restrictive policy nearing its peak globally.