Daily Flows
- Today, QTC has launched a 4-year floating-rate bond with an initial guidance of +29 to +32. Enquire with your Curve contact if you wish to submit a bid.
- As we approach mid-month, demand for funds from ADIs may be subdued as they receive inflows.
- In the TD market, the 9-month term deposits continues to offer the highest outright rates at 5.00%, with NCD market rates at +40 for 3 months.
China Outlook Remains Weak and the Week Ahead
- On Friday, China’s unemployment rate came in at 5.3%, higher than expected and the highest level since February.
- This figure, along with weak data across factory output, consumption, and investments, points to a slowdown that shows no sign of easing.
- While there are calls for the government to introduce stimulus to meet its 5% growth target for 2024, President Xi remains firm on supporting existing policies to achieve economic goals.
- Looking ahead, the week kicks off on Tuesday with U.S. retail sales data, followed by inflation prints for Canada and Great Britain on Wednesday.
- Thursday presents crucial data, overnight, the FOMC meeting will take place, with markets debating whether the rate cut will be 25 or 50 basis points.
- Domestically, we have employment data, which will be closely watched by the RBA as it seeks to maintain employment gains while managing inflation.
