Daily Flows

• A standout rate of 5.20% for 10 months continues to attract flow, with the market pricing at 5.10%.
• At the shorter end, term deposit market participants are enjoying levels upwards of 5.05% for 3 months when placing through unrated banks.
• As of late, NCD margins have varied, with foreign branch banks offering +50 to differentiate their levels from domestic offerings.

Consumers Relax a Little as the RBA Did Not Deliver a Hike

• This morning, the Westpac Consumer Sentiment Index beat expectations, rising by 2.8% to 85 for August.
• Although this is a significant increase, consumer confidence has remained historically low since COVID-19.
• Family finances saw a large increase of 11.7%, but it’s important to note that this data point remains in the bottom 15% of monthly readings.
• It seems confidence has built through tax cut relief, supportive fiscal measures, and easing concerns regarding the monetary policy outlook.
• The labour market remains tight, and consumers are not particularly optimistic about the jobs outlook.