Daily Flows
- Among Term Deposits an A-1+/AA- banks’ 5.1% 12 month rate stands out even in comparison to banks with lower credit ratings
- The 3-month BBSW declined by nearly 2 basis points, resulting in outright NCD levels being offered at 4.7392% for most domestic banks, while some foreign branch banks are quoting at 4.8392% outright.
- Continued activity within the secondary bond market saw Curve able to execute rewarding deals within the 5 year floating bond market.
Continued Job Growth and Easing Inflation Expectations Confirms RBA’s Cautious Approach to Rate Cuts
- Australia’s employment figures rose by 58.2k, surpassing estimates and making for a 6 month average of 50.9K. This, combined with a 0.2% rise in consumer inflation expectations, provided the RBA with the necessary confirmation to continue postponing rate cuts.
- Unemployment rate rose to 4.2% increasing by 0.1% from last month and part time employment took a big hit decreasing by 2.3k instead of a forecasted 15k increase.
- In the US Retail Sales beat out analyst expectations coming in at a 1% increase MoM following a 0.2% drop last month
- Major Indexes rose after the data releases with the S&P 500 rising 1.6% and the Tech heavy Nasdaq rising 2.34%