Daily Flows

• Bond activity was centered around the 2-3 year tenor with market participants looking to smooth out their maturity profiles.
• An A-2/BBB rated bank is offering the best pricing, with 6-month NCDs at +60.
• An A-2/BBB+ rated bank’s 10-month TD rate of 5.02% remains the market best in that range, despite their recent rate drop.

Equities Take a Hit as Lower-Than-Expected Non-Farm Payrolls Weigh on Market Sentiment

• The Non-Farm Payrolls annual revision dropped sharply to -818K from the previous -187K, leading to a pessimistic outlook in equity markets. The S&P 500 fell by 1.67%, the Nasdaq dropped 1.67%, and the Russell 2000 decreased by 0.95%.
• Japan’s inflation rate remained steady at 2.8%, despite the historic interest rate increase, underscoring the delay in higher rates affecting inflation.
• U.S. home sales increased for the first time in four months, despite record high prices, supported by a slight decline in mortgage rates amid anticipation of a potential rate cut.
• Gold and silver prices tumbled, with gold dropping 1% and silver falling 2%, halting their recent surge in value