Daily Flows
- An AA- rated institution has introduced 3-5Y TD rates that are 10 points or more above the next best rates offered by other institutions for each term length. Notably their 4Y rate of 4.87% is especially compelling.
- As investors consider the declining monetary policy outlook, it is no surprise flow has been directed to these longer duration offerings.
- An A-1 rated bank’s 12M NCD margin came in at +58, notably higher than those offered by banks with similar or better short-term ratings.
Canada’s Inflation Drop to 2.5% Fuels Global Optimism for Economic Stability and Soft Landing
- Canada’s YoY inflation rate dropped to 2.5% beating estimates by 0.2% and provided investors with reassuring data that Inflation rates globally are on the decline.
- The minutes from the RBA’s August meeting revealed a more pessimistic outlook on inflation’s persistence, with members expressing concern over recent market volatility and the potential impact on both inflation and the labour market if rates were adjusted.
- Gold prices hit new record highs amid geopolitical uncertainty and anticipated US rate cuts, while UK gas prices notably dropped by 4.04%, following a broader decline across most energy commodities.
- In the equity market, the major U.S. indices closed in the red, marking a reversal from their streak of gains earlier this week and signalling increased caution among investors amid shifting market dynamics.