Daily Flows
- Within the NCD market two A-2 rated banks setting their 12M rate at +40 continue to set more competitive rates compared with other domestic offerings.
- An A-1/A+ foreign branch bank’s 6 month term deposit rate of 5.08% was set, defying recent declines in that term range.
- This morning offerings of TCV 2027 FRN trading in the mid-twenties was snapped up quickly.
Bullock Remains Hawkish as Investors Hope for Tone Shift in Upcoming RBA Minutes
- Looking back at Michele Bullock’s opening statement the emphasis on inflation being sticky and the rhetoric used when describing future actions consolidates the belief that cuts are unlikely in the near future.
- We look towards the meeting minutes to see if this hawkish rhetoric is reiterated or if investors can uncover a more dovish sentiment from the Central Bank.
- In the commodity market Crude Oil and Brent continued its decline both decreasing over 2.5% within the day and over 5% within the week. Declines in oil can help reduce inflation as the cost of producing/transporting goods can relieve price pressures.
- New Zealand’s trade deficit widened as they logged a deficit of $0.96 billion in July, this halts a two month stretch of surpluses as imports jumped by over $1 billion dramatically exceeding the pace of export growth.
- Bullish sentiment persisted across global equity markets, with major indices such as the S&P 500, ASX 200, and FTSE 100 all closing in the green.