Daily Flows
- A limited rate of 5.05% for 1 year in the BBB space continues to be offered.
- With the yield curve inverting opportunities like this gather a lot of interest as market participants look for elevated yields.
- The NCD margins continue to remain elevated with a bid side tone. Today a margin of +45 is being offered to attract.
Federal Budget returns to Surplus in 2023
- Australia’s federal budget position is set to briefly return to surplus this year for an amount of $4.2Bn (0.2% of GDP).
- It is expected to fall back into deficit in 2023-24 onwards.
- This return to surplus has been supported by significant boosts in revenue that will lower future expected deficits.
- The Governments budget reflects its reprioritisation of key themes with significant relief on the cost of living across marginalised groups.
- With the unemployment expected to rise while Australia looks to cool inflation, it is expected that an increase in unemployment will have a significant focus in future policy and budgets.
- The budget assumes an inflation peak in 2023, with it slowing to 3.25% by 2024 and 2.75% by 2025.