Daily Flows

• Yesterday’s Suncorp 3.5-year senior issuance received an order book interest in excess of $1.5 billion, with the total deal size setting at $1.15 billion. There was an 80:20 split across the floating and fixed rate MTNs respectively, with the floating coupon setting at +110. 
• There is opportunity to pick up regional bank lines in the secondary market trading at DM upwards of +115.
• Market participants have been focussing on tenors around the 1-year mark, with some ADIs sporadically offering a rate of 5.50%.
• NCD margins hovering around the +48 region, with bespoke offerings above +50.

Jobs Market Shows Resilience But Softening Conditions Creep In

• Employment growth in Australia exceeded expectations, rising by 55k in October.
• Unemployment rate increased from 3.6% to 3.7% as the participation rate lifted.
• The labour market has shown a trend of softening conditions in recent months, with employers reducing hours but not significantly cutting the workforce.
• Reserve Bank of Australia (RBA) likely to view the employment growth cautiously, as much of it came from part-time employment.
• Disproportionate rise in employment for those older than 65 suggests a temporary boost from the Voice referendum.