- Yesterday the first Mutual issuance in a while was released. Bank Australia launched a 3 year MTN that priced at a discount margin of +150.
- The issue had over $260Mill in orders and issued $225Mill once the price was set.
- With a recent jump in reference rates, the spread between term deposits and NCDs has tightened.
- Currently, Market participants are able to pick up a 6 month NCD at a level close to term deposit rates.
Bullock Reaffirms RBA’s Resolute Goal of Returning Inflation to Target
- Yesterday Michelle Bullock spoke at the CBA Global Markets conference, reiterating key points ahead of todays inflation data.
- The RBA board has a “low tolerance” for inflation returning to its target range of 2% to 3% at a slower pace than anticipated.
- This stance remains firm, even if there are indications of economic challenges.
- Market attention is currently on the release of the Q3 2023 CPI data, with economists anticipating a 1.1 percent increase in prices for the July-September quarter.
- This exceeds the RBA’s annual target inflation range of 2 percent to 3 percent.
- The RBA’s staff forecasts, set to be updated in November, will also play a pivotal role in future decisions.