Daily Flows
- Yesterday, Bendigo’s 2027 floating stock attracted significant flows, with regional offerings showing a wider spread compared to majors as of late.
- Market participants were eager to acquire these offerings at a discount margin of +110.
- In the NCD market, participants directed a significantly flow towards longer terms, taking advantage of any remaining steepness in the curve.
- The standout rate for term deposits was 5.25% for a 1-year placement.
Markets Calmer And A Slight Decline in U.S. Activity
- With markets slightly calmer compared to the previous week, bond yields rose, and the USD experienced a slight decline.
- The NY Empire State Manufacturing Index dropped to -4.6 in October 2023, down from 1.9 in September, which was better than the expected -7, indicating a slight decline in business activity in New York State.
- Shipments experienced a notable 11-point drop, with a reading of 1.4, indicating a weakening trend.
- This data suggests the possibility of a slowdown in manufacturing activity at the beginning of the fourth quarter. However, it’s worth noting that contract manufacturing might be contributing to fluctuations in the data.
- Looking forward, firms maintained a relatively optimistic outlook for the six-month future, with a reading of 23.1 (compared to 26.3).
- The print is not significant enough to impact the Fed’s current outlook, but it does indicate a slight slowdown in activity for the month of October.