Daily Flows

• There was a pickup in demand yesterday, with a couple of domestic names chasing NCD funds.
• Following the movement of U.S. rates, the Australian 10-year bond rate has declined from a yearly high of 4.62% in January to 4.35% currently.
• This downward pressure has been driven by safe-haven buying and market expectations of further rate cuts.

Global Long-Term Rates Down & CPI Monthly Indicator Today

• Growing political unpredictability in the U.S. and easing interest rates globally continue to put downward pressure on the yield curve.
• The U.S. 10-year yield fell by 8 basis points overnight, and interestingly, despite safe-haven buying, the U.S. dollar is down.
• This raises the question of whether all the disruptive tariff talk and uncertainty may be driving investors away from U.S. exceptionalism.
• Today, markets will digest the first CPI print for the quarter. This data point is often taken with a grain of salt, as it does not capture the full basket and is overweight towards the goods component.