Daily Flows

• Term deposit flow was directed across the curve yesterday, with 9 months – 2 years offering the highest outright levels.
• NCD margins for 3 months is steady at +40 but end of month could see bespoke offering arise.
• Market participants looking for Green-Friendly options today are spoilt for choice with a number showing attractive levels.

Long End Bonds Sell-Off In The U.S Continues

• Overnight, the Sell-off in bonds continued, with the U.S. 10-year yield increasing by 10 basis points to 4.53%.
• Contributing factors may be come down to rising supply expectations and the ‘higher for longer’ narrative being priced in by the market.
• This ‘higher for longer’ narrative is further reflected in the notion that rates at the shorter term remained steady.
• Chicago Fed President Austan Goolsbee suggested a soft landing for the U.S. is possible but stressed an above-target inflation posed a higher risk to the economy than tight policy.
• This sentiment is being priced into markets globally and seen significant volatility at the long end.