Daily Flows

• Mid-month ADI inflows has seen demand for funds in the Money Market subside.
• Bespoke offerings are less common, and the chance to lock in higher yield for longer is beginning to turn.
• That being said, 5.75% for 1 year is still being offered by multiple banks in the BBB space.
• As the end of the rate hike cycle is insight, these longer term rates will continue to lower as future interest rate expectations are lowered.
• Domestic NCD offerings have cooled to +45 for 3 months.

Inflation Continues to Slow Globally

• Inflation globally continues to show signs of slowing down.
• UK inflation came in at 7.9% YoY, 0.4% lower than the forecasted 8.3%.
• This decrease was driven by falls in petrol and a smaller rise in food last month (in comparison to June 2022).
• Core inflation did ease to 6.9%, coming down from the May high of 7.1% YoY.
• Although the slow down is good news, inflation is still above the central banks target of 2.0%.
• The print did ease market expectations for a 50 basis point hike next meeting, wage growth will continue to be a source of concern for the Bank of England.