Daily Flows & Insights – Inflation Continues to Slow 

Daily Flows

  • This morning, ANZ has launched a 3 & 5 year floating/fixed MTN issuance.
  • The issuance is priced a couple basis points wider than the recent CBA launch.
  • A late of 5.40% for 12 months was locked in yesterday through a discretionary roll over channel in the BBB space.
  • NCD margins are +45 for 3 months in the BBB space, with ADIs coming to market before end of month.

Inflation Continues to Slow

  • Australian CPI for the month of July came in at 4.9% YoY, following on from 5.4% YoY in June.
  • This deterioration was driven by slowdown in housing and food prices.
  • Tradables inflation fell to 1.7% for the year, indicating that global factors may continue to contribute to the overall decline of inflation going forward.
  • Although inflation is tracking above the RBA’s forecasted levels, the quarterly print carries much more significance for future monetary policy.
  • The quarterly has a more complete snap shot of all inflation buckets in comparison to the monthly.
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Curve Team
Jack Pedersen