Daily Flows

• Attractive rates in the A1 space sparked inflows yesterday at the 6 and 12 month tenors, with the stand-out rate still at 5.22% today.
• The 5 year CBA FRN issued in 2019 matures today, with investors so far this morning rolling into 3 year major bank paper hovering around the +90 margin to BBSW.
• More ADIs have come to the table for funding today, with a domestic A3 issuer showing 5.20% for 6 month deposits. NCD margins are at the +45 mark but opportunities remain for margins of up to +55.

Inflation Off the Boil in Latest Data Print, RBA Keeping a Hawkish Eye Out

• Australian CPI fell by more than expected on a year-on-year basis, down to 4.3% in November from 4.9% in October. Consensus expectations had a fall by 0.5% to 4.4%.
• While YoY data is not as central to the RBA’s decision making as the quarterly number due at the end of the month, it does show that rate hikes are starting to work as intended heading into 2024.
• US inflation data for the month of December is also out on Thursday US time, with economists projecting an 0.2% monthly rise on the November print. Markets are currently pricing a 70% chance of a first cut in March, with more than 3 full cuts expected by July. These probabilities will be one to watch following the data print tonight.