Daily Flows & Insights – Clearer Picture of Australian Inflation Painted Today

Daily Flows

  • Monday’s Westpac issue sparked activity in the secondary market yesterday with investors eyeing other bank paper in the 3-5 year space.
  • A number of ADIs are issuing NCDs around the +45 mark but there still exists opportunities to lock in up to +55 over BBSW from a domestic A3 issuer.
  • A foreign branch bank (A1/A) is paying 5.22% for 12 month term deposits today, with the highest 6 month rate (A3/BBB-) at 5.20% this morning.

Clearer Picture of Australian Inflation Painted Today

  • Australian year-on-year inflation data is released later this morning with consensus expectations of a drop from 4.9% in October to 4.4% in November, partially on the back of lower fuel prices.
  • With upward trends in energy & utility prices, as well as the ever-present inflation in rental prices across the country, the inflation narrative is far from finished. December & 4th quarter inflation are both due in at the end of the month which will provide a more complete picture.
  • Markets have pulled back on rate cut projections in recent weeks, with the first full cut to interest rates priced in for the RBA’s August meeting. Keep an eye on changes in market outlook with these key prints still due before the February 4th meeting.
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Curve Team
Josiah Binet