- Friday was no excuse for flows to slow down last week with strong NCD activity once again in the 3 month region while TDs continue to flow into the 6 and 12 month bucket.
- Incumbent ADI’s continue to defend maturities putting more pressure on those ADI’s who seek additional funding to lift their offers.
- So far we haven’t seen a margin increase spiral emerge but it could develop if additional funding doesn’t emerge over the coming weeks.
- As far as pricing goes we continue to see leading 3 month NCD levels ranging from +40 to +45 in the three months with the 1 year at +70 looking attractive to those looking to lock in
- The pricing curve for TDs still has some shape in it out to 12 months which still remains in striking distance of 5% before flattening out for 2-5 years.
Calm Before The Storm
- After a stacked week of data behind us which left its mark on the outlook, things will me markedly quieter this week
- We will get the minutes from the RBA’s April meeting although we are likely to see little to move the market.
- Aside from that, markets will be left to their own devices which could actually result in more volatility not less as positions are taken ahead of the following week.