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.