Daily Flows

• NAB has come to market today, launching a 5-year fixed/floating rate note bond with an initial price guidance of 3m BBSW +87.
• A standout rate of 5.19% for 6-month NCDs was offered by an ‘A’ rated foreign branch bank yesterday.
• Bond yields in the U.S. rose overnight, as markets interpreted a Trump administration as inflationary.

Donald Secures Another 4-Year Term

• Donald Trump has been elected as the 47th President of the United States, prompting a positive response from Wall Street as stocks rallied on expectations of pro-growth policies.
• Momentum for the ‘Trump trade’ has intensified, with the possibility of a Republican majority across the Presidency, House, and Senate.
• Markets view a Trump administration as potentially inflationary, leading punters to scale back some anticipated Fed rate cuts for 2025, although a 25bp reduction remains nearly priced in for the upcoming FOMC meeting.
• Following the election, global currencies have seen sharp declines against the USD, with markets signalling concerns over the potential impact of higher tariffs on global growth.