Daily Flows

• An A-1/A rated bank led yesterday with 4.42% for 6 months, providing a clear premium over all other A-rated names.
• While AMP has lowered its TD rates, its 31-day notice account still offers 4.50% (corporate) and 4.30% (financial), making it a standout in the very short end.
• We saw strong activity across several 5-year FRNs yesterday, including TCorp 2030s and high-yielding NewCap 2030s, reflecting demand in the longer part of the curve.

Geopolitical Tensions Ease, But Caution Remains

• Risk sentiment improved as fears of wider conflict between Israel and Iran faded, with signs of possible diplomatic engagement helping settle markets.
• This week is central bank-heavy, with the Fed expected to keep rates steady. Focus will be on its updated projections and any signals from Chair Powell on policy timing.
• The US 10-year Treasury yield rose 5bps to 4.45%, still well-off last month’s highs, while Australia’s 10-year yield sits at 4.24%.
• Domestically it’s a quiet data day, but in the US, retail sales and industrial production data are due overnight—both key inputs to assess if tariffs are impacting the US economy.