Daily Flows

• Yesterday, ahead of the FOMC, we saw market participants seek fixed duration through NTTC term deposits, offering 4.60% for 4 years.
• At the shorter end of the curve, 6-month term deposits continue to hold the highest outright levels, with 5.13% being offered by an ‘A’-rated counterparty.
• Today, Suncorp has entered the market, issuing its first bond under the new entity name, Norfina. They are looking to issue 3- and 5-year fixed and floating MTNs with initial guidance of 3mBBSW +77 and +95.

Confident Fed Cuts by 50 bps and Begins a New Chapter

• The Federal Reserve lowered its interest rate benchmark by 0.5%, marking its first rate cut in four years.
• Much to the surprise of economists and markets, the decision was overwhelmingly one-sided, with 11 to 1 voting for the 50 bps cut.
• Jerome Powell expressed confidence that the U.S. is well on its way to achieving the 2.0% inflation target, a move aimed at supporting the labour market.
• He was quick to clarify that this doesn’t mean markets should expect future 50 bps cuts as a standard.
• The unemployment forecast was revised upward to 4.4% by year-end, with inflation projected to hit 2.3% and growth to slow to 2.0%.
• There is now significant monetary policy divergence between Australia and the U.S., with Michelle Bullock standing firm that rates will remain elevated in Australia for the foreseeable future.

In Honour of today being ‘Talk Like A Pirate Day’ Please enjoy the following:

Daily Flows

• Yesterdee, ahead o’ the FOMC meetin’, we saw market scallywags seekin’ fixed duration through NTTC term deposits, offerin’ 4.60% fer 4 years.
• At the shorter end o’ the curve, 6-month term deposits be holdin’ the highest outright levels, with 5.13% bein’ offered by an ‘A’-rated matey.
• Today, Suncorp has entered the seas, issuing its first bond under the new ship’s name, Norfina. They be lookin’ to issue 3- and 5-year fixed and floatin’ MTNs, with initial guidance o’ 3mBBSW +77 and +95.

Confident Fed Cuts by 50 bps and Begins a New Chapter

• The Federal Reserve lowered its interest rate benchmark by 0.5%, markin’ its first rate cut in four years, arrr.
• Much to the surprise o’ economists and markets, the decision was overwhelmingly one-sided, with 11 to 1 votin’ fer the 50 bps cut.
• Jerome Powell expressed confidence that the U.S. be well on its way to reachin’ the 2.0% inflation target, a move aimed at keepin’ the crew employed, arrr!
• He was quick to clarify that this don’t mean markets should expect future 50 bps cuts as a standard, savvy?
• The unemployment forecast was revised upward to 4.4% by year-end, with inflation projected to hit 2.3% and growth slowin’ to 2.0%.
• There be now significant monetary policy divergence betwixt Australia and the U.S., with Michelle Bullock standin’ firm that rates will remain high in Australia fer the foreseeable future, matey!