Daily Flows

• In the NCD space, we have seen a pick up in demand. Despite this, domestic margins held steady at +40 for 3-6 months.
• With a public holiday in Victoria, Tasmania, and South Australia, and potential disruptions in Queensland due to Cyclone Alfred, market participants should expect some interruptions.
• A standout 1-year rate of 4.75% is available today in the BBB+ domestic space, presenting an attractive opportunity.

The Week Ahead

• On Friday, Powell stated that the U.S. economy is “in a good place”, reinforcing that the Federal Reserve is in no rush to cut the federal funds rate.
• Although U.S. payrolls data came in slightly below expectations, Powell’s hawkish tone was enough to drive an equity rally and a bond sell-off.
• Looking ahead, Australian business and consumer surveys will be released on Tuesday, providing fresh insights into domestic economic sentiment.
• The key global event this week will be the release of U.S. February inflation data, with YoY inflation expected to print at 3.3%.