Daily Flows

• After a quiet start to the financial year, activity is expected to lift today as several BBB+ and BBB banks look to raise their monthly funding targets early.
• Rabo Bank (A-1/A) continues to lead the long end, particularly in the 4–5 year range, offering ~30bps above comparable names, with 4.55% the top rate yesterday.
• We’ve seen a flurry of primary issuance to kick off FY25—QTC 2029 FRNs priced at +42 yesterday, with Suncorp and Rabo launching MTNs today.

Eyes on May Retail Print

• US bond yields climbed as solid labour data and comments from Fed Chair Powell led markets to slightly reduce expectations for near-term rate cuts.
• The JOLTS job openings report beat expectations, lifting front-end yields. Meanwhile, President Trump’s One Big Beautiful Bill (OBBB) passed the Senate, though it now faces pushback in the House.
• Tariff risk remains in focus, with Trump confirming no plans to delay the July 9 deadline for higher tariffs and reiterating threats to cut off talks and impose broader duties.
• Today in Australia: May retail sales and building approvals are due. Retail sales are forecast to rise +0.5% following a soft start to the year, with hopes for a modest rebound in today’s print.