19 April, 2024

Daily Flows

• There is an opportunity in the NCD space to pick up a 6-month NCD at +60 from a domestic BBB+ issuer.
• This level exceeds current TD rates, with an outright level of 5.22%.
• Bank of Queensland is launching a 5YR FRN/FXD MTN with an initial price guidance of 3mBBSW +135.
• Yesterday, investors who acted quickly were able to acquire section-tier bank paper at attractive margins.

Labour Market Eases But Overall Remains Tight

• Labour data has been volatile since the beginning of this year; however, the retracement in unemployment seen in February still held some ground, with unemployment rising slightly to 3.8%, indicating steady labour market conditions.
• Employment saw a slight decline (-6.6k) after a strong February (+117.6k), with part-time jobs decreasing while full-time jobs increased.
• Despite modest increases in underutilisation measures, some labor market indicators have pulled back from post-pandemic peaks, with vacancies remaining high, and businesses reporting labor availability constraints on output.
• The RBA has forecasted the unemployment rate to reach 4.2% by October this year.