Daily Flows

• Yesterday we saw flow to Tascorp floating Senior Unsecured bond, maturing 2029. With only $500Mill issued, any offerings in the market have been snapped up quickly.
• In the TD space the ‘A’ rated names continue to lead the market, with consistent offerings over 5.30% for 6-12 months.
• The domestic NCD market has cooled from last month. The going rate is now sitting at +40 for 3 months.

Geopolitical Tension On The Rise and Pivotal Data to Come

• Overnight, U.S. Israeli strikes on Beirut increased uncertainty. Paired with the imminent Fed meeting, U.S. Treasury Bonds tightened with the 2 year dipping to 4.36%.
• In Australia CPI and Retail Sales is released today. Markets are expecting a flat reading of 1.0% QoQ.
• Any deviation from the expected across the CPI, retail sales and Federal Reserve meeting may cause significant market reactions.
• Currently markets are pricing a 25% chance of an interest rate hike at the August RBA meeting.