Daily Flows

• Tight liquidity in the banking system has led to multiple institutions offering attractive NCD rates.
• A +50 basis point (bps) increase is commonplace, with bespoke levels being offered to attract investors.
• The standout level is 5.10% for a 3-month term, offered by a Green-Friendly BBB- rated bank.

Markets Cautiously Begin To Consider Rate Cuts in 2024

• Over the past month, equities have rallied as markets anticipate that the peak in central bank tightening has passed, and potential cuts loom for Europe and the U.S. in 2024.
• This week, markets have taken a cautious approach, with equities starting slightly lower and bond yields tightening.
• Oil prices dropped as oversupply is factored in, considering the potential for further production cuts at the OPEC+ meeting later in the week.
• The Aussie dollar has risen to USD 0.66, buoyed by a weak $US and a diverging interest rate outlook between Australia and the U.S.