Daily Flow
- Yesterday there was flow to QTC, TCV and NTTC FRN lines, with market participants favouring tenors 2029 onwards.
- A Foreign Branch Bank (A-1) has come to market today showing +50 for 3 month NCDs.
- Term deposit flow was mixed yesterday, with market levels of 4.95% for 3 months, 5.05% for 6 months and 5.10 for 1 year.
Good News On The Horizon in The U.S?
- Overnight in the U.S. PPI, rose by 0.1% MoM, less than market expectations.
- A very positive point noted is the fall in services cost pressures. The fall was the largest in over a year and gives evidence that sticky services inflations is on its way down.
- Markets ended trading on a higher note in the U.S. with equities rallying and bond yields tightening ahead of tonights U.S. CPI print.
- It is expected widely by market participants and economists that the Fed will cut by 25 basis points in September.
- Tonight it is expected that inflation will have decelerate from 3.0% to 2.9% YoY and U.S. retail sales to pick up by 0.2% MoM.