Daily Flows

• Today, Police Bank has come to market with a mandate to issue a 3-year MTN in the near future. With Curve acting as Joint Lead Manager, please reach out to your Curve representative to express interest.
• Yesterday, semi-government floaters were offered in the market and snapped up within minutes.
• Six-month NCD offerings from foreign branch banks continue to lead in outright yield, with some reaching the 5.20% range.
• A bid tone remains strong across the TD and NCD space, rewarding those responsive to bespoke levels with above-market yields.

Inflation Results Confirm No Rate Cuts Anytime Soon

• Trimmed mean inflation reached 3.5% year-on-year (0.8% quarter-on-quarter) in Q3, aligning with forecasts. The six-month annualised rate eased to 3.3%, staying slightly above the 2–3% target range.
• Services inflation rose for the second consecutive quarter, reaching 4.6% year-on-year, outpacing goods inflation at 1.4% year-on-year.
• While trimmed mean inflation has moderated, the RBA is expected to maintain the cash rate at 4.35% until February 2025, with a possible 25 basis point cut should inflation further decline.
• Market participants now anticipate the RBA’s first rate cut could be delayed until at least May next year, with only a 23% chance of a cut by December.