Daily Flows
- An A2/BBB+ equivalent bank has set their 3 month NCD margin at +60 to kick off the morning, but is chasing a limited amount of funds. Market participants keen to take advantage of this opportunity should contact their Curve representative as soon as possible this morning.
- Several A2 banks are at 5.30% for 12 months today with a bid tone emerging as the week progresses.
- Investors looking at the shorter end of the TD curve can be rewarded with 5.10% for 3 months, with opportunity from unrated banks for up to 5.25% yesterday.
Consumer Confidence Creeps Up in June, Breaks Downward Trend
- A quiet start to the week with no significant releases yesterday. Today’s Westpac Consumer Confidence Index kicks things off this morning.
- Three consecutive declines in consumer confidence, amidst creeping unemployment and the spectre of stagflation lurking on the horizon, were expected to fuel continued pessimism in June.
- Sentiment, however, turned a corner, creeping back up to a level of 83.6 on the index, an increase of 1.7% MoM.
- The indicator, comprising five indices reflecting consumer evaluations of household financials situation, anticipated economic conditions over the coming year, and buying conditions for major purchases.
- Any improvement in broader consumer confidence will be well received by the RBA as it may, ironically, provide justification for a hike in forthcoming meetings in order to break the back of inflation.