Daily flows
- Last Friday marked the end of AMP’s standout rates, but several BBB+ green-friendly names remain active in the market this week.
- The 1-year TD space saw 4.25% as the prevailing rate last week, with many councils now favouring this tenor over shorter-term options.
- Demand for NCDs remains strong into EOFY, with new money continuing to clear at +45bps over 3-month BBSW.
Geopolitical Tensions Set the Tone for the Week Ahead
- Risk-off sentiment surged as markets reacted to fears of further escalation between Israel and Iran. Investors sought safe-haven assets, while oil prices jumped on supply concerns, raising inflation risks.
- US bond yields rose on Friday, with the 10-year Treasury up 5bps to 4.41% and the 2-year rising 4bps to 3.95%.
- The G7 Summit began in Alberta, with the Israel–Iran conflict expected to dominate discussions, alongside global trade and inflation concerns.
- Locally, May employment data is due Thursday, while in the US the FOMC meets Wednesday, both events are key for shaping interest rate expectations.
