Daily Flows
- Westpac had a Senior Secured issuance for 5 year MTNs.
- The issue only attracted $2.4 Billion and priced at 3MBBSW +93 and 5.017%.
- The going rate for 6 month term deposits remains 5.10% and 5.25% for 12 months.
- NCD margins hovered at +45 with some bespoke offerings still around at higher levels.
Consumer Sentiment Driving Trends In Business Conditions
- Consumer sentiment was down from 81 to 79.7 for the month of September.
- Although consumer sentiment was up from interest expectations easing, this was offset by unemployment expectations rising and pressure on family finances.
- Pressure on family finances is currently the lowest is has been in 31 years.
- Time to buy a major house hold item was down significantly.
- This is reflected in business conditions in which retail and personal goods sector has been down.
- As consumers are feeling the pressure on family finances, they are less inclined to purchase such items whilst other business sectors remain relatively more stable.
- Business conditions came in 1 index point higher at 2 with forward order unticking slightly but still remaining negative.
- Overall this data is not significant enough to change the RBAs current monetary policy.
- The RBA will continue to keep a close eye on services inflation and make sure wages do not get out of control